Indian Manufacturers Raise Prices Up to 30% as Middle East War and Chip Costs Stoke Inflation
Updated
Updated · The Economic Times · Jun 8
Indian Manufacturers Raise Prices Up to 30% as Middle East War and Chip Costs Stoke Inflation
3 articles · Updated · The Economic Times · Jun 8
Summary
Price increases have spread across India’s consumer sectors, with electronics such as smartphones, laptops and TVs rising by as much as 30%, far steeper than recent FMCG hikes.
A roughly 10% inflation hit across many product portfolios is being driven by the Middle East conflict, while electronics makers also face a two- to three-fold jump in memory-chip costs and rupee depreciation.
Dabur, Marico, Emami, HUL and Godrej Consumer all signaled more price-led growth, saying margins are under pressure but demand should hold up as last September’s GST cuts cushion consumers.
Dixon Technologies expects smartphone volumes to grow in the low-to-mid teens this fiscal, with another 12-15% revenue growth coming from higher prices, while appliance makers have already raised prices 12-13% and may increase them further.