Godrej Appliances today said the depreciating rupee is making imports of components costlier,as a result of which the company might have to hike product prices by up to five per cent.
A unit of Godrej & Boyce Manufacturing Co,Godrej Appliances that makes a range of products like air-conditioners,refrigerators and washing machines,might hike prices in the range of 2-5 per cent across product categories post June.
“Due to the weakening of rupee against dollar,importing components has become more expensive. We will have to review the situation and if the trend continues,then we might go for a price hike after June,” Godrej Appliances Vice-President (Sales and marketing) Kamal Nandi told reporters here.
He said almost 70 per cent of AC components are imported,while chemicals and other products used to manufacture other consumer goods have also become costlier.
In January this year,Godrej had increased prices of its air-conditioners by 15 per cent and done increase of around two per cent across categories in March due to excise duty rise.
In the last one year rupee is down over 20 per cent against dollar. It closed at all-time low of 53.96 against the US dollar today.
Commenting on the consumer demand for ACs,Nandi said: “Last year ACs as a product category had degrown by 35 per cent and even this year,the category growth from an industry point of view will be almost flat due to weather conditions and price hike done by companies.”
Other products like refrigerators and washing machines are likely to grow by 10 per cent this year. Godrej Appliances is targetting a 25 per cent growth in its turnover this fiscal at Rs 2,500 crore compared to last year.
The company today said it is organising a host of activities to spread awareness about energy conservation among consumers as a part of its ‘One Watt Campaign’.
It is partnering with corporates,schools and NGOs to save around one billion watts of power in the next twelve months.
Godrej has a marketing tie-up with IPL team Kings XI Punjab for the same.