Fridge, AC to cost more from next month

MUMBAI: Prices of refrigerators, air-conditioners and washing machines are set to go up 3-5% starting November, as white goods makers plan to pass on higher input costs.
However, consumers will mostly feel the impact only from December, as retailers are saddled with unsold inventory from Diwali which they will first clear before sourcing fresh stock at higher prices, three senior industry executives said.Input cost has gone up by 30-50% since the last price hike, which the industry effected in January.
The price of steel has since increased by 40% and that of copper by 50%. A crucial chemical called MDI, which is used to make foams mostly for refrigerators, is facing a global shortage and its price has doubled.
“These three account for almost 70% of input cost and hence 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," said Godrej Appliances business head Kamal Nandi. Refrigerator prices will be the first to go up, from next month, Nandi said.
Washing machines will the next and, eventually, AC prices will be revised from January, he added.
White goods market leader LG Electronics India and rival Samsung, too, have worked out price hikes on these categories in line with the rest of the industry, said the chief of a leading retail chain. While Samsung denied any plans for a price hike, an email sent to LG remained unanswered till press time Sunday.
Prices of four- and five-star ACs are likely to go up further as a new energy efficiency rating, Indian Seasonal Energy Efficiency Ratio (ISEER ratings), becomes mandatory from January whereby inverter and lower-priced fixed-speed AC models will be rated on similar guidelines.