Appliances and consumer electronics makers are using social media platforms and other online tools to reach their customers, who are facing problems with products amid the lockdown.
China supplies several components for air conditioners made in India. Shortage of these components could affect AC production in India. "We are well stocked till the first week of April. But unless the supply from China is restored in the next couple of weeks, we could face a challenge in the production front after that," said C P Mukundan Menon of Blue Star.
While presenting the budget, Finance Minister Nirmala Sitharaman had proposed to hike the basic customs duty to 12.5 per cent from 10 per cent on compressor of refrigerator and air conditioner. In a residential AC, compressor and motor, which account for around 30 per cent of the price are imported, while sheet metal, coils and other are sourced locally.
"By March 2020, TV prices will be increased by 10 per cent due to the current Coronavirus crisis of China, there is a major shortage of raw materials along with a sharp 20 per cent increase in open cell panel prices," Avneet Singh Marwah, CEO of SPPL said.
Prices of TVs, ACs and some phones are set to go up as manufacturers grapple with component shortages.
The Japanese appliances giant plans to launch smart door bells, plugs and switches. This will be followed by side-by-side refrigerators, front-loading washing machines, fans, geysers amongst others covering the entire product portfolio in phases.
Experts said it might take some more time before a wide spectrum of consumers, such as those in rural India, start spending.
The Budget doubled basic custom duty from 10% to 20% on whole lot of imported products such as food grinder, juicer, shaver, epilator, geyser, room heater, hair dryer, electric iron, oven, coffee and tea maker, toaster and ceiling fan. The custom duty on wall fan has been hiked from 7.5% to 20%.
Manufacturers of appliances and consumer electronics are seeking lower taxes on eco-friendly and energy-efficient products, more incentives for domestic manufacturing and waiving of customs duty on inputs imported to make the components in the upcoming Union Budget.
The company’s business head Kamal Nandi said kitchen appliances products will be sold under the Godrej brand itself. The company has just ventured into air coolers and is now going to create a new channel of stores which sell air coolers and kitchen appliances.
According to the notification, all brands and types of star-labelled RACs, which are rated from one star to five stars based on their energy efficiencies and manufactured, commercially purchased or sold in India, shall ensure default setting of temperature in the room air conditioners at 24 degrees Celsius, with effect from January 1, 2020.
The Delhi patent office has rejected an application by Tata Chemicals for its water purifier Swach on grounds of it being “obvious” and “lacking in inventive step”. The plea was rejected on January 2, on a pre-grant opposition filed a decade ago by HUL, which owns the Pureit brand.
The oil filled models are imported making it impossible for companies to meet up the current stock out situation while some brands have restarted production for the basic models to meet up the continued demand.
The company, which has more than 25-year-long presence in India and is now scaling up exports, also said “structural changes” such as demonetisation and GST had led to some “teething troubles” for the economy and resulted in creating a “brief period of uncertainty”.
The company, which has recently brought to the market a zero water wastage purifier, is looking at add capacity of 4 lakh units annually through its third unit.
FMCG firms said cost of commodities such as wheat, edible oil have gone up by 12-20%.
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