Financial Express – March 28, 2005 – Mumbai
MONA MEHTA

MUMBAI, MARCH 27: The consumer durable companies are all set to increase prices following the announcement by steel companies to hike prices in the second quarter of 2005.

LG Electronics India plans to hike prices of its microwave ovens by an additional 5-10% while Samsung India has claimed that it will increase prices of its washing machines and refrigerators by 3-4%.

While prices of Onida washing machines are expected to rise by 4%, Blue Star Ltd too is looking at the possibility of increasing price of its central air-conditioning by 5%.

Interestingly, with the objective of countering the price hike and pass on the benefits to end-consumers, companies have geared up to introduce multi-utility appliances at revised prices.

Said LG Electronics India, product group head - microwave ovens- Pushp Saurabh Baisakhia, “We will soon launch a cafe microwave with an in-built coffee dispenser within the LG microwave oven.”

Meanwhile, Samsung India Electronics, director (marketing), Ravinder Zutshi explained that Samsung will add three new microwave oven models in the convection categories.

Currently, the entry level price of Samsung microwave oven is Rs 5,990, whereas that of LG is from Rs 4,990 onwards.

When contacted, appliance division of Godrej & Boyce Manufacturing Company Ltd, Soumitra Ghatak informed, “We have already hiked prices of washing machines and refrigerators by less than 5%. But, if need arise, we will hike prices of Godrej appliances even further.”

Industry players think that the size of the microwave oven market will touch Rs 350 crore over the next two years from the current level of Rs 275 crore.

As a result, its penetration too is expected to increase from .3% to .8% by then.

The refrigerators segment is expected to witness growth in penetration levels from 17-19%.