Consumer durables companies' price gamble

Consumer durables companies are heading towards increasing prices of their products in response to an increase in raw material costs. Prices of steel, copper and aluminium have been rising on a steep gradient since July 2020. Most metal prices have risen between 20 per cent and 35 per cent in the past seven months. As a result, manufacturers of air-conditioners, appliances and automobiles are considering increasing prices.

The festive season is over and demand for most consumer durables has weakened. Companies are therefore testing a difficult market as they seek to protect their margins. Margins had soared during the quarters