Prices of TV and appliances likely to go up by around 10% from January

0
15

Prices for LED TV and appliances reminiscent of fridge, washing machines are anticipated to go up by around 10 per cent from January subsequent 12 months on account of rise in prices of key enter supplies like copper, aluminium and metal and enhance in ocean and air freights expenses.

Besides, costs of TV panels (Opencell) have additionally gone up by over two-folds due to quick provide by the worldwide distributors, whereas value of plastic has additionally gone up due to rise in crude oil costs, mentioned producers.

Terming it as imminent and unavoidable, producers reminiscent of LG, Panasonic and Thomson are going to enhance the costs from January, nevertheless, Sony continues to be reviewing the state of affairs and is but to take a name on this.

“We expect the increase in commodity prices to impact our product pricing in near future. I anticipate the prices to go up by 6-7 per cent in January itself and may go up to 10-11 per cent towards end of FY Q1,” mentioned Panasonic India President & CEO Manish Sharma.

LG Electronics India can be going to enhance the value of a minimal of 7 to eight per cent throughout its merchandise within the appliances class from January 1 subsequent 12 months.

“From January, we are going to increase the price of 7-to 8 per cent on all products including TV, Washing Machine, refrigerator etc. There is an increase in raw material prices and metals as copper and aluminium. Moreover, crude oil prices have gone up, hence the cost of plastic materials have also gone up substantially,” mentioned LG Electronics India VP-Home Appliances Vijay Babu.

While for Sony India, it’s nonetheless a ‘wait and watch’ state of affairs and but to take a ultimate name on this however hinted that additionally it is shifting in that instructions.

On being requested in regards to the costs Sony India Managing Director Sunil Nayyar mentioned: “Not yet. It is a wait and watch. We are watching the supply side, which is changing day by day. Its blurry situation and we have not decided as how much… Tendency is moving towards that situation.”

The panel costs have edged up and the some of the opposite uncooked materials prices additionally has gone up, specifically for the TV, he added.

“I reckon it with primarily with demand and supply situation. There is excess demand because of work from home and there is limited supply because factories were not running at full capacity and that has created a vacuum in the supply side and have pushed up the prices,” mentioned Nayyar including “it was a perfect storm as all thing came together disruption in supply, excessive demand and extraneous issues”.

Prices of small display screen sizes have an even bigger challenge for the business and their costs have gone up considerably.

“Off course, the large screen also has an issue but I do not think it is troubling. India is still a predominantly 32-inch screen size market,” mentioned Nayyar.

Super Plastronics, the model licensee for French Electronics model Thomson and Kodak, mentioned there’s a shortage of TV Opencell available in the market and the costs have virtually gone up by 200 per cent.

“There is an increase of 200 per cent in panel prices and despite the increase, there is short supply. Due to no alternative of panel manufacture at the global stage, we are dependent on China. So, Thomson and Kodak will increase the android TV prices by 20 per cent from January,” mentioned SPPL CEO Avneet Singh Marwah.

Videotex International Director Arjun Bajaaj mentioned: “The other factor leading to a sharp rise in the prices is the three-fold increase in Import Freight charges compared to October 2020.”

However, there’s a warning word additionally from the Consumer Electronics and Appliances Manufacturers Association (CEAMA) saying {that a} worth hike by the manufacturers may additionally hamper the general demand within the subsequent quarter.

“A rise in the commodity cost by 20-25 per cent, increase in the ocean and air freights to the extent of 5-6 times due to shortage of containers and the lag in the mining activity due to the pandemic is putting upward pressure on the overall input cost for Appliances. As a result, brands are most likely to increase prices to the extent of 8-10 per cent in near future, which may hamper the overall demand in the next quarter,” mentioned CEAMA President Kamal Nandi.

However, Nandi, who can be Business Head and Executive Vice President Godrej Appliances, mentioned the business hopes that will probably be offset to some extent by pent up demand surfacing now.

According to Nayyar: “It would not sustain for a long period but for the industry until the first half of the next year, the pressure would remain.”

The Indian appliances and client electronics business is basically depending on world imports, primarily from China, for the sourcing of parts and some of the completed items.

According to a joint report by CEAMA and Frost & Sullivan, the business had a complete market measurement of Rs 76,400 crore in 2018-19, during which Rs 32,200 crore was contributed from home manufacturing.

LEAVE A REPLY

Please enter your comment!
Please enter your name here