“Raw material prices have increased by 22% and we have only taken a price increase to the tune of 12-15% across categories since January,” Kamal Nandi, vice president at Godrej & Boyce Mfg Ltd., told BloombergQuint.
While refrigerators saw a bigger jump in prices, Nandi said washing machines have seen a hike of 9-10%.
If commodity costs continue to rise, the company will increase prices further in the third quarter, Nandi said. But for air conditioners, he said, prices will only rise in the next summer season if raw materials don’t become cheaper.
Freight costs have also surged four to fivefold over the pre-pandemic levels, according to Nandi and Avneet Singh Marwah, chief executive officer at Super Plastronics Pvt., a maker of Thomson-branded televisions in India.
The company has increased prices by 30% to offset a rise in costs, and doesn’t intend another round of hikes to stay competitive to Chinese brands.
Marwah, however, cautioned that there could be a supply issue in the second half of the festive season, which is starting from the second week of October.
Parts from China are coming with a delay of 45 days, making it difficult to supply products on time.
High global demand after pandemic-induced restrictions were eased has caused shortage of chips for everything from televisions to cars.
Freight prices, too, are at an all-time high as China shut the port at Ningbo-Zhoushan, one of its busiest, for 14 days, Marwah said.
And then there are concerns around demand itself.