TV, appliances to become costlier

After festive season, rupee slide plays in mind of consumer durable makers

New Delhi, Nov. 25: Prices of TV and home appliance are set to increase as the consumer durable makers are reviewing their selling price post festive season sales amid tight margins.

In order to ensure smooth festive season sale, consumer durable manufacturers had temporarily absorbed impacts on their input costs, following the depreciation of the rupee against dollar and increase in custom duty.

Panasonic India is set to increase the prices of its products by up to 7 per cent, while some others players have already increased it.

“Over the last few months, the rupee has continually risen which in turn is impacting our inputs costs. While we try to absorb maximum costs for our consumers, but given the market situation, we will be forced to hike the prices by 5-7 per cent from next month,” Panasonic India President and CEO Manish Sharma told PTI.

Expressing similar sentiments, Haier India President Eric Braganza said: “We have ensured that the price rise comes into effect post the festive season since India tends to purchase consumer durables extensively during this time.

Mr Braganza further added “the decision was undertaken considering that cushioning of prices was no longer an option with tight margins coming into play.”

In India, festive period, starts from Onam and is followed by Dussehra and lasts till Diwali and accounts for nearly one third of the sales.

According to the Consumer Electronics and Appliances Manufacturers Association (CEAMA), there was an increase of around 3 to 4 per cent in prices in September, however, it did not get materilaised.

“Though the MRP was increased, the price hike undertaken in September did not really get effective, due to sluggish demand and brands trying to garner maximum share in the market place during the crucial festive season,” said CEAMA President Kamal Nandi.

Mr Nandi, who is also Godrej Appliances Business Head and executive VP further noted that “Onam was a washout for the industry due to the Kerala floods and the festive season did not perform as per initial expectations”.

He further said, as the festive season is over, brands are gradually making the price hike effective. “We should be seeing the same implemented over November and December,” he said.

— PTI