New Delhi, March 14: Korean majors LG Electronics and Samsung on Wednesday announced a price hike of up to Rs 2,000 on high-end home appliances, in the wake of the recent Budget announcements linking countervailing duty (CVD) to the maximum retail price. However, colour televisions have been spared from any price increase by both these companies. Vice-president of LG Electronics Ajay Kapila said "we have been forced to pass on the customs duty increase in a small part to the consumer. This, coupled with the already dull sentiment of the consumer electronics market, is going to affect sales adversely".
He said hikes of between two-four per cent means the price of Frost-free refrigerators will go up between Rs 400-Rs 2,000 for sizes above 280 litres. For fully automatic washing machines, the hike is between Rs 200- Rs 400, whereas microwave ovens will cost up to Rs 300 more.
Mr Ravinder Zutshi of Samsung Electronics India Ltd (SEIL) said "even though the linking of the CVD with MRP has compelled us to increase prices of some of our white good products, our attempt has been to pass on only a minimal hike to customers, while absorbing the rest ourselves".
Other companies likely to be hard hit by the Budget provisions include Daikin Shriram Airconditioning and the newly formed joint venture company Fujitsu General. Mr Zutshi said in the case of air conditioners, for example, the increase is of Rs 400 for all window ACs, "we have absorbed over 70 per cent of the impact and passed the bare minimum to the consumer".
Samsung has increased Frost-free (FF) refrigerator prices between Rs 650-Rs 850; fully automatic washing machines' by Rs 450-Rs 600, while prices for both microwave ovens and split air conditioners have been left untouched.
(PTI)
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