White Goods AC, Fridge To Get Pricey By 3-5%

Business

oi-Roshni

The end user of these appliances shall see a surge in price by 3-5% this December after the dealers begin to stock the new inventory with higher price.

By Roshni Agarwal

Published: Monday, October 30, 2017, 12:50 [IST]

The manufacturers of white goods will pass on the heightened input cost to consumers and white goods including AC, fridge and washing machine are set to get pricey by 3-5% this November.

The last price hike was made in the month of January this year. Majority of the input cost i.e almost as much as 70% is attributed to steel, copper and a chemical called MDI. The price of steel and copper has surged by 40% and 50% respectively whereas the chemical is in short supply in the overseas markets which has increased its price to almost double.
The manufacturers of consumer durables are of the view the net impact due to the increased input cost will be by as much as 5%-6%. To one of the leading business dailies, Godrej Appliances business head Kamal Nandi said," there is a net impact of 5-6% on prices. However, we will absorb some and pass on the rest, that too probably in phases, since market sentiments are not very buoyant"

For the end users of these white goods, the impact with the higher price tags shall be seen in the December month after dealers run out of the current stock.