Chandigarh: Korean consumer electronics brand LG on Wednesday said it may hike price of its products by up to 5 percent from November, citing rising input cost and appreciating US dollar against rupee.
"There is a possibility of again reviewing the prices (of home appliances) because of increasing manufacturing cost and appreciating US dollar...the price may be hiked by up to 5 percent," LG Electronics India, Business Head (Home
Appliances), Rajeev Jain told reporters here on Wednesday.
"We will soon review our cost and if required we will raise prices from November," he said.
LG has already raised prices of its products thrice this year by 4.5 percent.
Appreciating US dollar against rupee has put an additional burden on company’s cost as 40 percent of its home appliances are imported from its different plants located in China, Korea and Thailand. "Nobody expected that US dollar will rise such a way and it is one of the biggest factors in raising our cost," he said.
Few items such as fully automatic washing machines, dish washers, water purifiers are completely imported from other countries for Indian market which will push up their cost, he informed.
US dollar is hovering over Rs 49 against rupee.
LG has also blamed rising input cost which is forcing it to again review prices upward. "The raw material cost has increased by 7 to 10 percent in this year alone which is also another factor in increasing prices," he said.
LG is targeting sales of Rs 1,500 crore from its home appliances segment in festival season comprising September, October and November.
"Festival season is encouraging as we have already generated sales of Rs 800 crore in September month and maximum sales have come from refrigerator, microwave and washing machines," he informed.
LG is eyeing sales of Rs 5,000 crore, constituting 30 percent of total sales, from all segments in festival season this year. Last year, the company attained sales of Rs 4,000 crore in festival season.
In the first eight months of current year, LG as a whole has grown by 32 percent compared with the industry growth of 12 percent.