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 told PTI.
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."
The company plans to launch IoT (Internet of things)-enabled refrigerators this year, Nandi said, adding, "We are testing those products at present."
"Premiumisation is a trend that will continue. Demand for premium products are going up in the rural market and our focus, therefore, is to expand our exclusive outlets in the tier II, III and IV markets," he said, adding, "We have over 80 stores at present, and we want to open 20 more this year."