Mixed fortunes for consumer durables industry

Mixed fortunes for consumer durables industry

Author | exchange4media News Service | Wednesday, Feb 04,2004 7:08 AM

Mixed fortunes for consumer durables industry

There’s good and bad news for the consumer durables industry. The consumer electronics segment has nothing much to smile about. But the Budget has brought some cheer to air conditioner manufacturers as excise duty has been cut to 24 per cent from 32 per cent.

The good news for the end consumer: an impact on prices, with a 1.5 tonne AC costing at least Rs 1000 less. And for the industry: an expected 25-30 per cent growth in the segment, which has been seeing lacklustre growth.

The CTV industry, on the other hand, will have to remain content with a five per cent cut in peak customs duty, from 30 to 25 per cent, which should benefit CBU product imports and, to a marginal extent, colour picture tube prices, a fact that will make the television manufacturers very unhappy.

The peak customs duty reduction will bring prices of high end, imported products like big-sized refrigerators and CTVs down by around Rs 1000. However, the 14 and 21 inch CTV segment, which accounts for the volumes, will remain unaffected. Consumer Electronics & TV Manufacturers Association (CETMA), which had been lobbying since last year.

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