As the $ rises, pay more for FMCGs & white goods

08 Dec,2011

By A Correspondent

 

The falling rupee is raising the heckles for consumers already grappling with rising food prices. Over the last few weeks several fast moving consumer goods companies and white goods makers have increased prices, citing the depreciating rupee. And, those left behind are also bracing for a hike.

 

If you haven’t noticed it yet, telecom handset makers such as BlackBerry and HTC have already jacked up prices by around 5%. According to retailers, Nokia has also raised the prices by the same amount, but the company declined to comment. Godrej, LG Electronics and Whirlpool have increased prices by around 8%. Samsung is planning to raise smartphone prices by 3-5%, but when it comes to white goods, the Korean giants have already opted for a 2-5% increase for refrigerators, washing machines and microwave ovens. Godrej Consumer Products, Dabur, Panasonic will follow suit, company executives said.

 

While demand is not rising significantly, most companies say they can no longer absorb the lower margins on account of higher commodity prices. Although metal prices have declined internationally in recent weeks, the falling rupee has eroded the gains. Since the beginning of August, when the rupee was a little short of the 45-mark against the dollar, the Indian currency fell to a low of 52.73, a decline of nearly 18%. On Monday, the rupee closed 51.42, but even this is 15% lower than the level seen four months ago.

 

Source: The Economic Times

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