Declining rupee vis-a-vis dollar has given rise to inflation in Indian market. The rupee has been on a continuous slide against the dollar.
Feeling the heat of the declining rupee value in international market, consumer durable players have decided to hike the price. Some have increased it to the tune of 5% on existing price.
Blue Star and LG have already increased prices, Tata group company Voltas has said that it’s keeping its options open.
“Due to continuous rupee depreciation, it has become imperative for us to consider the price hike in India. Though we have been absorbing the increase in cost, it will become difficult to avoid this change in the market prices,” LG India director (home appliances) Y.V. Verma said in a statement.
Consumer durables makers, especially air-conditioner companies, use a lot of imported components in manufacturing their goods. Hence, any slide in rupee has a direct impact on the companies’ margins.
“The impact of the price hike would be seen in all LG home appliances products by 3-5 per cent… We hope that our partners and patrons will cooperate with us in this situation,” Mr. Verma added.
The company’s home appliances range includes refrigerators, washing machines, microwaves, vacuum cleaners, air purifiers, water purifiers and dish washers.
We will have to wait and watch if they wil reduce the price once rupee gains in the market.
Source – PTI