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Godrej in plans to hike prices of Refrigerators and Washing Machines
Posted on: 21/May/2018 4:24:52 PM
The latest update from the Godrej mentions the plans of the company to raise the current price tags of Refrigerators and Washing machines. The new launches of the company expects a 20 percent growth in Refrigerators sales and an approximate estimation of 25 percent growth in Washing Machine sales this year.
Now the Godrej Group is in the process of executing the altered prices fixed for the upcoming launches of the devices. This can go in the range of 2 to 3 percent increase from the current rates starting in the month of June. The main reason for this price hike is credited to the input production cost, due to Indian Rupees declined rates in the World economy and the after effects of demonetization and GST implementation. The increase in crude oil also plays a key role in the increase of the production cost of the consumer electronic devises said one of the officials of Godrej.
The Plastic and Steel are the main sources in the production of the electronic appliances like Washing Machines and Refrigerators. So the imposed GST increases the cost of the raw materials and in the series of events the increased production cost is transferred to the customers buying the machines. So the price hiking is very much criticized by the consumers who planned to buy those devices in the summer offers.
The Government’s initiation to bring down the GST level from 28 to 18 percent was delayed owing to various internal affairs of the nation and so the consumer electronic appliances are in a zone of hike this year’s summer.
The unseasonal rains in many regions of India brought down the sales of Air Conditioner this year. Intermittent rains in the northern and western parts of India impacted the overall sales of the AC devices. A de-growth of 20 percent was found in terms of AC sales reported the Godrej Group. Anyway the Company is in the verge of implementing the increase in premium devices sales and expecting a 35 to 40 percent growth in the total sales following the next three years.
