What’s should be your strategy for primary market in FY25?

Owing to the inflationary pressures, consumer durables makers are increasing the prices on back of higher commodity prices. As the cost of input is increasing, makers are passing the burden to the consumers.

A report in Business Standard newspaper stated that around 5-6% price hike has already effected and another round  is also near.

Kamal Nandi, business head and executive vice president, Godrej Appliances told the publication that manufacturers have only slightly increased the price owing to the pandemic as they did not want to impact the demand. Now, price hikes have become unavoidable and the burden had to be shifted to the consumers. Considering the scenario, a phase-wise price increase was initiated from January this year.

For the real estate players, rising input prices are a significant concern as they are not in the state to absorb the surge in prices. The brunt of rising commodities’ prices is being transferred to consumers.

The cement industry is also facing the brunt of inflation. Ravinder Reddy, director, Bharathi Cements told Business Standard that this is also impacting the housing industry. Cement prices are expected to surge up to Rs 10-15 per bag. In addition, fuel prices are indeed adding fuel to the fire.

Owing to the onset of summer, the demand for air conditioners will be on surge but inflation will not go down anytime soon.

Prices of steel have also edged up 29%. Similarly, prices of other metals have climbed 24%. A hike in crude prices due to production cut by the OPEC+ countries is also responsible for the surge in commodities price.