AC, fridge prices set to rise 5-8%

Faced with substantial increases in the cost of almost all raw materials, airconditioning and refrigeration (AC&R) companies are set to increase prices. President of Refrigeration and Airconditioning Manufacturers’ Association (RAMA) S K Sinha said, “Airconditioning and commercial refrigeration companies have no option but to pass on part of the cost increase to end users. Prices of AC&R equipment are set to increase between 5 to 8 per cent sometime in May 2008.”

It said steel (including galvanised steel) has increased by 24 per cent this quarter compared to the average for the previous three quarters. Similarly, aluminum is expected to rise 14 per cent, copper by 8 per cent and high impact polystyrene by 7 per cent.

“Oil prices are more than 30 per cent higher compared to the average for the previous quarters. Oil price increase has had a chain effect on a variety of goods directly as well as indirectly through the transportation costs,” it said. Currently, the industry sources some materials from the domestic manufacturers and some through imports. “Notices have been received from components manufacturers for a price increase of roughly 10 per cent. Chinese manufacturers account for the vast majority of imports and all the Chinese manufacturers have asked for a price increase,” it said.