The news doing the rounds in the consumer durables industry is that consumer electronics makers such as LG, Godrej & Boyce, Videocon and Whirlpool may hike the price of refrigerators, washing machines, air conditioners and flat panel displays by 5 per cent, by March 2010. This is to make up for increasing input costs and tax outgo. Godrej & Boyce may hike price if the pressure on margins increases, which is currently about 2 to 3 per cent.
The Rs 30,000-crore consumer durable industry, which had been frequently increasing prices till Diwali, is hit by the continuing rise in prices of raw materials such as steel, plastic and copper. The prices of flat steel products have gone up to Rs 2,000 a ton this month, almost 8 per cent higher than in the pervious year. Prices of other key components like copper and plastics too have gone up by 10 per cent.