Price hike from LG Electronics

LG Electronics India has decided to hike prices of its products in almost all categories from Nov1 to offset the sharp depreciation of rupee against the dollar.
"We have decided to hike prices from November 1 ranging from up to 5% across almost all product categories, as we are unable to take further hits on account of rupee depreciation," LG Electronics India Head (Electronics) Amitabh Tiwari told Press.

"We will be increasing the price of CTVs by 3.5%, washing machines and refrigerators by 4%, while that of LCDs would remained unchanged as the price decrease benefit will get offset with rupee depreciation. Otherwise prices of LCDs would have decreased by about 7%," Tiwari said.

Rupee depreciation took the Indian currency past the 50 mark against the dollar.Tiwari said the previous production cost was based on the average dollar cost of Rs 43 and it was impossible to absorb it further."With this round of price increase, we will be able to cover the average dollar cost to Rs 49," he said.the company said it continued to be bullish on India and had recently announced plans to invest USD 50 million to enhance its manpower and R&D by 2009.