Blue Star hikes prices of ACs, refrigerators

To counter the escalating raw material prices, Blue Star has hiked prices of its air-conditioning and refrigeration products.

In an interview with CNBC-TV18, B Tyagrajan, president, Blue Star says, the price hike has been in the range of 2.5 to 5%, depending on the product category.

Below is a verbatim transcript of his interview with CNBC-TV18's Sonia Shenoy and Gautam Broker. Also watch the accompanying video.

Q: There is some news about your competitors hiking prices of air conditioners in order to combat raw material pressures. You yourself have been facing a lot of pressure in terms of raw materials; your margins have slipped quite a bit, is there any plan to hike prices of your products?

A: Yes, as far as air-conditioning and refrigeration products are concerned, we have increased prices once in the month of October and again in the month of March. This is basically to counter the escalating raw material prices like copper, steel as well as certain other input materials.

Q: What is the quantum price hike you are looking at, at this point?

A: We have already implemented. Around 3% average was implemented in the month of October and additional 2.5 to 5% depending on the product category has been implemented already in March.

Q: Electro-mechanical and projects (EMP) division was lagging behind, there was a 5% degrowth in Q3. Has the execution situation improved in that segment?

A: It has picked up. But we are in the last week of March, so till the results are announced, I won