LG Home Appliances Prices May be Raised up 5 % from Nov
Korean consumer electronics brand LG Wednesday stated it might raise price of its own products by upto 5 percent from November, appreciating US dollar against rupee and citing increasing input cost.
“There’s a possibility of once again evaluating the prices (of home appliances) due to increasing production cost and appreciating US dollar…the cost could be increased by upto 5 percent,” LG Electronics India, Business Brain (Home Appliances), Rajeev Jain informed press reporters here Wednesday.
“We will shortly review our cost and when needed we’ll increase prices from November,” he explained.
LG has increased prices of its own products thrice this season by 4.5 percent.
Valuing United States dollar versus rupee has place an added burden on company?s cost as 40 percent of its own home appliances are imported from its distinct plants positioned in Thailand, Korea and China. “Nobody anticipated that US dollar will increase this kind of way and it’s among the largest factors in increasing our cost,” he said.
Several items including automatic washing machines, dish washers, water purifiers are totally imported from several other countries for Indian market that will push up their cost, he advised.
US dollar is hovering against rupee over Rs 49.
LG has also attributed increasing input cost that’s pushing it to review prices up. “The raw material cost has grown by 7 to 10 percent within this year alone that is also an additional factor in raising prices,” he stated.
LG is targeting sales of Rs 1,500 crore from its home appliances segment in holiday season including September, November and October.
“Holiday season is supporting as we’ve already produced sales of Rs 800 crore in June month and maximum sales came from refrigerator, stove and washing machines,” he advised.
LG is seeking sales of Rs 5,000 crore, making up 30 percent of overall sales, from all sections in holiday season this year. The company achieved sales of Rs 4,000 crore in holiday season., this past year
In the very first eight months of present year, LG in general has exploded by 32 percent compared with the business growth of 12 percent.