Kolkata: As season of summer is ready to knock the door and many of us are planning to purchase Air conditioner but here is small sad news for all of us as AC prices are expected to rise by 5-7 per cent in July-September.
An industry expert said on Wednesday that this is due to growing raw material prices and the possible implementation of the Goods and Services Tax.
Joint Managing Director, Blue Star Ltd, B. Thiagarajan said, “Raw material prices like copper, aluminium and steel have been steadily rising for the last few quarters. The proposed GST bracket for us would be 28 per cent, which is disappointing for the industry. All these could lead to a price hike by up to 5-7 per cent in July-September.”
Talking about sales growth projections in the next financial year starting from April, he said the company should clock a 15-20 percent rise in revenue from the room air conditioners segment in 2017-18.
He said at the launch of new inverter split air conditioner range, “The air conditioner industry grew by 20 per cent in October-December despite the demonetisation impact, so there is no reason to believe that growth in the summer season and thereafter would not be in double digits.”
Thiagarajan also said the company would invest about Rs 3.5 billion over the next three years on two new manufacturing units in Jammu and Kashmir and Andhra Pradesh.