Increase in prices of base metals such as steel and copper has become a major concern for electronics major LG Electronics India.
If price hike continues, the company might raise prices up to 5 per cent for refrigerators, washing machines and ACs, the company said.
“We are trying our best to absorb the effects of price hikes but if the trend continues then the company will be forced to raise prices by 1 to 5 per cent on certain products,” said Moon Bum Shin, managing director LG Electronics India.
He said refrigerators & washing machines with steel as a major component and ACs with copper as a major constituent may feel the heat.
Steel prices have risen by Rs 1,500-2,000 per tonne in the last two months. Price of copper has also been on the rise. Analysts expect copper prices to rise by over 30 per cent in 2010.
Shin said, price hikes notwithstanding, the company has set a robust 46 per cent rise in its revenue targets for 2010. “We expect sale of LCDs, GSM mobiles and ACs as the future growth drivers.”
The company is eyeing sales of Rs 19,000 crore in the calendar year 2010. It mopped Rs 13,000 worth sales in 2009. “India contributes just 6 per cent of LG’s global revenue collections. We plan to take it to 12 per cent by 2015 that will put India’s contribution next only to the US, which contributes to 25 per cent of LG’s global revenues.”