Godrej Appliances, the consumer durables division of the Godrej Group, is likely to hike prices of its refrigerators and washing machines by 2-3 per cent starting June, due to the rising input costs on weakening rupee and increasing oil prices, top company official said.
“One can expect a price hike starting from June. Refrigerators and washing machine, which are largely plastic and steel led, will see a price increase. The quantum should be 2-3 per cent,” its business head and executive vice president Kamal Nandi said.
He said that the industry is also likely to increase prices in similar amounts going forward. While the rupee is hovering around Rs 67 mark against the US dollar at present, the crude oil breached the USD 80 a barrel mark recently, thereby increasing the input cost for consumer durable companies.
Asked if the price hike would impact the demand, Nandi said, “Given that there is good monsoon expected this year and the summer has been subdued in terms of demand, we expect the demand to go up.”
Hoping that the government might bring down the goods and services tax (GST) to 18 per cent, from 28 per cent at present on ACE (appliances and consumer electronics) goods, before the festive season, he said, “This, coupled with a good monsoon, should propel growth for the industry.”
Refrigerators account for 55 per cent of the revenue for the Rs 3,900-crore company, while air conditioners and washing machines contribute 18 per cent and 17 per cent, respectively.
The company expects a 20 per cent growth in refrigerators, led by new launches, and over 25 per cent growth in washing machines, according to Nandi.