Blue Star has raised the prices of its products because of an increase in raw material costs, the company’s MD B Thiagarajan said in an interview to CNBC-TV18.

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“We have already announced the price increase,” he said in an interview with CNBC-TV18. “..because you cannot be coping with this kind of raw material price increase at all. It had to be passed on,” he said.

“The raw material prices are a matter of concern, be it copper, aluminium, steel and zinc. While the inventory pressure has gone (away) with a great festival season, for building up for summer you have to correct the prices,” he said.

“We have increased our prices anywhere between 5 percent and 10 percent depending on the product category,” he said.

“This Diwali was a bumper Diwali. The secondary sales was extremely good and we are almost at 100-105 percent of last year level. We think this momentum will continue,” Thiagarajan said.

According to him, government’s production linked incentive (PLI) scheme for air-conditioners is a wonderful scheme.

“Rs 5,000 crore has been sanctioned by the government. Out of which Rs 3,000 crore should be for the finished goods and Rs 2,000 crore should be for the components. The industry players have come together and there is a lot of deliberation that are taking place. It is linked to the increase in production value and the investment as well. I think it is a wonderful scheme,” he said.

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(Edited by : Santosh Nair)

First Published:Dec 8, 2020 11:58 AM IST