Hitachi Home to hike prices before fiscal-end

Consumer durables firms Hitachi Home and Life Solutions (India) Ltd (HHLI) Wednesday said it may increase prices before the fiscal-end, owing to rising input costs.

Hyderabad: Consumer durables firms Hitachi Home and Life Solutions (India) Ltd (HHLI) Wednesday said it may increase prices before the fiscal-end, owing to rising input costs.

HHLI is the consumer durables unit of Japan-based Hitachi Ltd.

"Raising prices will put pressure on margins. We will, accordingly, take measures to neutralise them. We will take decisions based on market conditions also. We hope there will be price hike before the end of this fiscal. It could be in the range of 3 to 4 percent," Anil Shah, Director (Finance),

HHLI, saidduring the launch of Hitachi 5 star-rated air-conditioner in Andhra Pradesh market.

To question on the forthcoming Union Budget, he said they do not expect any favours from the finance minister. He, however, said the proposed GST (goods and services tax) regime may bring some cheers to the consumer durables sector.

It may be noted that Indian steel makers have hiked prices in the range of 3 to 5 percent in the recent times.

Gurmit Singh, vice president and head (sales and business planning), HHLI, said they expect to achieve 10 percent growth in sales in 2011. According to him, the total market for air conditioners in India 2010 was around 3.2 million and is expected to reach 3.8 million this year.

To a query on the plant capacity increase, Singh said the present capacity of 4,00,000 units per annum need not be increased till the middle of 2012 as it was sufficient to cater to the targeted growth.

"In June our presence was limited to 236 towns. With an aggressive plan it will reach to 317 towns by the end of next month," he added.

PTI

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