LG Electronics hikes product prices by up to 6%

Electronics and IT products maker LG Electronics India today announced a hike of up to 6% in prices of its products owing to rupee depreciation.

"Due to continuous rupee depreciation, it has become imperative for us to consider the price hike in India," Sanjoy Bhattacharya, Product Group Head, IT, LG Electronics India (LGEIL) said. The impact of the price hike would be seen on all IT
products by 6%.

It also increased prices of some consumer durables by 3%. "The price hike is applicable on front loading washing machines, microwave owens and flat cathode ray tube appliances," Y V Verma, COO, LGEIL said.

There is has been no increase in prices of flat panel television sets, mobile phone and air-conditioners. LGEIL's has manufacturing unit at Greater Noida and Pune but imports majority of components used in IT products especially the panel of monitors from other countries like Korea and China.

Bhattacharya said that the impact of weakening of rupee is to the extent of 8 to 10%. "Though we have been absorbing the increase in cost but it will become difficult to avoid this change in the market prices," Bhattacharya said.

The new prices will be applicable from September 27, 2011 onwards.