LG hikes refrigerator prices by 6 pc
LG Electronics India today announced a marginal price hike in refrigerators due to the constant escalation of input costs, effective from June 1 onwards. The price hike would be to the tune of six per cent for all models in direct cool as well as frost-free categories.<p align=justify>LG Electronics India today announced a marginal price hike in refrigerators due to the constant escalation of input costs, effective from June 1 onwards. The price hike would be to the tune of six per cent for all models in direct cool as well as frost-free categories.
Mr Anil Arora, Business Group Head, Refrigerators, said: "It has become imperative for us to consider price hike due to rise in input costs. The overall impact on the company's raw material cost for refrigerators has steeply increased by an average of 10-13 per cent due to rising base metal prices like copper, zinc, and HR coil, along with crude oil resulting increase in plastics and energy cost."
Steel, copper and plastics are some of the critical inputs of refrigerators and all these raw materials have registered an average price hike of 20-25 per cent. Steel and copper prices alone have seen price rise of 25 per cent and 100 per cent respectively compared to January 2006.
Crude oil prices have gone up by 20 per cent, resulting in an escalation of 20 per cent in the cost of various engineering plastics and energy.
"We have been trying to absorb these rising input costs for long but the trend is on a constant rise and we have reached at a level where absorbing cost internally seems to be a tough proposition," Mr Arora added.
