Colour Tv Prices: Mncs Go Up, Local Makers Down

Pre-budget panic has gripped the colour television (CTV) industry. While multinationals like Sharp and Panasonic of Japan have hiked the prices of their fastest selling CTV categories by around Rs 500 per unit, Indian major BPL has cut prices for a 14-day period preceding the budget.

Confirming the move, Girish Rao, manager, BPL, said, BPL's end-user for both the fast moving 21-inch CTV brands will have to pay Rs 1,400 less per set, while the 14-inch CTV is available at Rs 900 less. The change in prices before the budget is in anticipation of additional levies the industry may attract.

 

Consumer Electronics and TV Manufacturers Association secretary K S Raman says, There is a likelihood of the government levying Rs 200 per CTV and B&W set at the excise point of exit from the plants which is to be used for financing broadcasting infrastructure. Gopal Jivrajkar, director of the Panasonic-Salora joint venture, denied an increase in ex-factory prices for the moment, but said there could be some tinkering of prices at other levels depending on market conditions.

Sharp has also indicated a pre-budget price increase. Rajiv Naik, regional manager, Kalyani Sharp, Mumbai, confirmed that the maximum retail price for CTVs in the range of 14, 20 and the 21 inch are up by Rs 500 per unit with the price rise being enforced from February 15 onwards.

CETMA office bearers have confirmed the pre-budget price hike by the MNCs. According CETMA sources, at least two other MNCs are slated to hike prices before the budget with the rest expected to follow after the budget.

Margins of many CTV manufacturers have thinned due to the extravagant offers made to beat competition. Raman, commenting on the price increase, said CTV volumes no longer give desired bottomlines and considering the fact that the market of two million CTV sets shows no signs of expanding even in the next year, the tendency on the part of MNCs would be to hike prices compensating the loss of critical volumes.

There is a likelihood of a further price increase by the MNCs after the budget considering that competitive pricing and schemes like those announced by Akai India during the year must have imposed a squeeze on their huge launch budgets, an industry source said.

Gul Mirchandani, chairman, Onida, said a price increase at this point would be detrimental in the long run unless the hike is a natural upward correction for unrealistic prices. Onida will not hike prices although there is a aqueeze on its margins.

Mumbai electronic dealers like Vijay Electronics and Winner Electronics broadly hinted at price revisions for most of the MNC brands before the budget.