Prices of LED televisions are expected to rise by 3-4 per cent this month as cost of panels have gone up in the global market besides an increase in logistics expenses.
It will be the second hike by the manufacturers in the last three months. In April, the prices were hiked due to a rise in operating cost on account of increased ocean freight charges, and domestic transportation costs.
Brands such as Panasonic, Haier and Thomson are considering increasing the prices of LED televisions.
Panasonic India & South Asia President and CEO Manish Sharma said that in line with the commodity price increase, "we are also looking at increasing prices for some of the products in the range of 3-4 per cent".
Haier Appliances India President Eric Braganza said there is no other option than to increase the price.
"The panel prices have gone up. Everyone has been left with no option but to increase the price. Panel prices of 32 inches, which are largely sold in India, and large screen sizes (such) as 42 inches have gone up. Manufactures would have to take a call on price increase," he said.
According to him, Haier is also going to increase prices by 3-4 per cent from June 20.
Super Plastronics Pvt Ltd (SPPL), the brand licensee for French Electronics brand Thomson and US-based brand Kodak, said a hike of Rs 1,000-2,000 is expected in the coming days.
"Freight charges both international as well as domestic are (at an) all-time high now. Besides, the panel prices are growing again," SPPL CEO Avneet Singh Marwah said.
According to him, open cell prices for screen sizes of 40 inches and above have gone up around 3 per cent in the international market.
The open cell panel is an important part of television manufacturing and covers around 70 per cent of a television unit. Most of the manufacturers import panels from China.
"Now, ocean freight for a container from Shenzhen, China to Nhava Sheva port is costing us around USD 4,200. One-and-a-half years ago, the cost was only around USD 600," he added.
Videotex International, which owns Daiwa and Shinco brands, said open cell prices are again on the rise, which will lead to an increase in prices again in the coming months.
"The open cell prices since June last year went up by 300-400 per cent... during the second lockdown, there was a temporary drop in prices being offered for open cell due to overstocking by the trading companies. However, the prices are again on the rise continuously which will lead to increase in prices again in the coming months," Videotex International Director Arjun Bajaaj said.
Last year, the government restored the import duty on open cell. It had re-imposed 5 per cent customs duty on the import of open cells for TVs from October 1, 2020, after having nil duty for a year.
Besides, the government had also put imports of TV under a restricted category from free to promote domestic manufacturing. Now, importers of TVs have to seek a licence from the government for the imports.
TV is one of the largest segments under the entire domain of appliance and consumer electronics. It accounts for a volume of almost 17 million with an estimated sale value of almost Rs 25,000 crore.
According to a joint report by the industry body, CEAMA and Frost & Sullivan, the TV market is expected to grow to 284 lakh units in 2024-25 from 175 lakh units in 2018-19.
Open cell panel and the chips of the TV are predominantly imported from China besides some other markets as Taiwan, Thailand and Vietnam and only the last mile assembly is done in India, as per the report.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)