LG hikes prices of home appliances by 5 per cent on falling rupee

Consumer durables major LG Electronics India has hiked prices of its entire range of home appliances by up to 5 per cent due to weakening rupee with effect from Tuesday.

The company's home appliances range include refrigerators, washing machines, microwaves, vacuum cleaners, air purifiers, water purifiers and dish washers.

"Due to continuous rupee depreciation, it has become imperative for us to consider the price hike in India. Though we have been absorbing the increase in cost but it will become difficult to avoid this change in the market prices," LG Electronics India Director (Home Appliances) Y V Verma said in a statement.

Rupee has been on a continuous slide against the US dollar and slumped to record low of 58.98 last week.

"The impact of the price hike would be seen in all LG home appliances products by 3-5 per cent... We hope that our partners and patrons will cooperate with us in this situation," Verma said.

Consumer durables makers, especially air-conditioner companies, use lot of imported components in manufacturing its goods. Hence any slide in rupee has a direct impact on the companies' margins.

Blue Star has also announced an increase in its room air conditioners with effect from July 1 by 2.5-7.5 per cent depending upon the models due to the falling rupee.

Tata group firm Voltas, meanwhile, has said it is keeping its options open regarding raising prices.

Despite the challenges, air conditioner manufacturers have been enjoying a good summer this year with sales jumping by 25-30 per cent.

With inputs from PTI