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Here's why TV and refrigerator prices wont increase immediately

Consumer electronics makers had hiked prices by up to 5% last month due to rupee depreciation.

, ET Bureau|
Updated: Sep 15, 2018, 10.13 PM IST
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Godrej Appliances business head Kamal Nandi said the industry will absorb any further depreciation of rupee so that the festive season sentiments are not affected.
With rupee crossing 72 against the dollar, wondering whether prices of televisions, refrigerators, washing machines and microwave ovens are set for another round of price hike? It is unlikely to happen anytime soon, with consumer electronics makers having already hiked prices by up to 5% last month due to the rupee depreciation benchmarking it at around Rs 72 against the dollar.

For the industry the challenge is also to generate demand during the up-coming festive season considering the last month price hike already wiped out some of the gains which came from the recent reduction in goods and services tax (GST) rates on refrigerators, washing machines and some other household appliances from 28% to 18%.

And on top of that, sales during Onam in Kerala -- which typically heralds the festive season -- was a complete washout due to the natural calamity there, three senior industry executives said.

Hence, the white goods industry has decided they will absorb any further depreciation of rupee against the dollar at least till Rs 74-75. The industry has also imported the components and placed order for imported products at an exchange rate of Rs 72 and hence expects to tide over the situation at least till the festive season.

Godrej Appliances business head Kamal Nandi said the industry will absorb any further depreciation of rupee so that the festive season sentiments are not affected. “We are keeping an eye. However, since the components and products are already there, we expect no further changes in pricing till Diwali,” he said.

Panasonic India CEO Manish Sharma said in order to ensure positive sentiment across consumers during the upcoming festival season, we are trying to hold the cost impact on prices. “However, if further depreciation of rupee happens beyond 73 against US dollar, we will not be in a position to absorb the impact. The rising panel prices over last few months have been adding to cost pressures too,” he said.

As per industry report, the consumer durables market in India is slated to grow at 10-12% per annum. The white goods market is currently valued at Rs 43,000-crore. During the last ten years, the Indian major domestic appliances market grew by 9% surpassing the overall 3% growth of global white goods market.
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