Daikin to hike AC prices by up to 5% from August

Rupee depreciation has increased the input costs, thus putting pressures on inventory creation

Air-conditioner manufacturer Daikin today said it will hike prices of its products by up to 5% across range from August 1 to offset input cost pressures due to rupee depreciation.

"Ascending US dollar rates as compared to the rupee has increased the input costs, thus putting pressures on inventory creation. The move is to offset the rising manufacturing costs," a company statement said.

The increase in price will be between 3 and 5% prices across all its product range, it added.

The company's room ACs are priced at a range of Rs 28,200 to Rs 86,600.

The rupee has been on a continuous slide against the dollar and had touched an all time low of Rs 61.20 per dollar on Monday.

Rupee depreciation puts pressure on consumer durable companies, as they import components and other material such as copper wire in manufacturing.

Commenting on the price hike Daikin Airconditioning India Pvt Ltd Managing Director Kanwal Jeet Jawa said: "Although we have been trying to offset the pressure created by the depreciating rupee by holding back prices of our product range, the continual pressure created by the current economic conditions have forced us to take the step."

At Daikin India, the impetus is to keep the price appreciation at the minimal but it would be difficult for the company to absorb the increasing input costs any further, he added.

Companies such as LG India, Blue Star, Voltas and Haier India have already hiked their product prices since July 1. Other like Sony India and Samsung are monitoring the dollar- rupee volatility and are yet to take a call on price increase.