LG Electronics announces price hike

NEW DELHI, INDIA: LG Electronics India Pvt Ltd (LGEIL) announced a price hike owing to the constant escalation of input costs.

The price hike will span across categories like monitors and optical storage devices and the targeted price increase is around seven to 10 per cent. 

However, with a view to soft pedal these sudden impacts, LG will be increasing the prices in a phased manner, starting with three per cent with immediate effect.

The LCD monitors will have two additional impacts in market prices. As the customs duty is based on MRP, this dollar appreciation is further compounded by proportionate increase in duty owing to increased MRP.

Additionally, there is an increasing trend of LCD panel prices. Thus, in LCD monitors the impact will be a combined effect of dollar appreciation, proportionate duty increase and the panel price increase.

R Manikandan, business group head, Monitors and OSD, said, “It has become imperative for us to consider price hike due to rise in exchange rate, which has gone up significantly in the last one month. From sub-40 range in the last week of April, the exchange rate has gone up to 42.5 as on May 29. This is approx seven per cent rise in exchange rate over last one month period, resulting in increased costing, calling for increase in market prices.”

Talking to the channel partners on the price hike, he further said, “Our partners have always been very supportive in the past and we would appreciate their support in this complex situation as well. I take this opportunity to request them to take due care while quoting forward prices as the price increase will be felt steadily on all products and brands, of course with varied intensity levels. It can be a good idea to stock up the LCD monitors as much as they can manage in the short run.”

As the dollar projections are looking stronger in the short run, the overall prices will have to go upwards steadily, the most vulnerable being the LCD owing to compounded effect.