This summer, consumers will have to pay more for household appliances, especially ACs and refrigerators, with the likes of Samsung, LG, Godrej, Electrolux, Carrier and Whirpool contemplating a 2-7 per cent price hike.
Despite flooding the market with energy efficient and innovative products to lure consumers, the unprecedented increase in steel prices have forced the companies to pass on the burden to customer, who is already shelling out more for essential commodities.
Samsung India Deputy MD R Zutshi told PTI that based on the input cost pressure linked with the hike in steel prices the company has already increased the prices of refrigerators by 2-3 per cent in March.
"We are also contemplating a price hike for our air conditioners," he added.
Similarly, Godrej - which had recently announced a 2-3 per cent increase in products with high steel content - would consider another round of hike after the season.
"If the government is unable to curb the present inflationary trend, we will have to take a re-look at the prices post summer," Godrej Appliances Sales and Marketing VP Kamal Nandi said.
LG Electronics India, which had re-worked its pricing in December last year, says the current inflationary trend was hitting the company's margins badly.
"We have not taken a decision yet as to when we will go for higher rates, but it will happen very soon. Air conditioners are expected to be 4-5 per cent costlier, while other ranges like refrigerators and washing machines will be higher by 3-5 per cent," LGEIL Sales and Marketing Director V Ramachandran said.
Amid steps being taken by the government to regulate steel prices, industry experts are of the view that the measures to be taken could be of some help in a longer run, but in the short term industry will suffer.
Steel prices have risen by up to 49 per cent in the last one year, exerting inflationary pressure on the economy. Inflation is hovering at over a three-year high of 7.14 per cent.
"The cost of elements has gone up substantially, because of which we might see an increase in the prices of consumer durables during and after the season," Technopak Associate Vice President Anil Rajpal said.
Videocon Industry's home appliances division Electrolux may also take up the price of ACs by 5-7 per cent and 3-5 per cent on refrigerators. "We might raise the prices in mid May or June," Electrolux Marketing General Manager Madhav Nene said.
Similarly, AC maker Carrier is also evaluating various options to combat the inflationary pressure.
Even Whirpool, which had unveiled a number of new products across five categories -- refrigerators, washing machines, air conditioners, microwave oven and water purifiers -- had said there would be another price increase by 2-3 per cent in April-June quarter across various categories. The company had increased the prices of its products by 2-3 per cent during January to March period in a phased manner.
