Cabinet prices shoot up by almost Rs 100

DQW Bureau
New Update


Following RAM, now the prices of cabinets have increased by Rs 100 in the

local IT market. Accord-ing to market sources, the price increase is due to a

shortage of raw materials in the global market and it is expected to go further

up in the coming weeks. However, a section of resellers say that the price

increase is due to the recent hike in freight charges, while others attribute it

to the revision in tax struc-tures in China, the hub of manu-facturing of IT

products. As usual, the market is in the dark and trying to interpret their own

reasons for the sudden price increase.

"We have revised our prices by Rs 25 in the entry-level and Rs 60 to 75

in the mid and high-end range of products. How-ever, some of our competitors in

the local market are not increasing the price for the time being, giving a tough

time in business. We are sure that they cannot continue this for long and they

might be playing this game with their old inven-tory. Once new stocks come in,

they will have to effect the price cha-nge," said a promoter of lead-ing

brand based in Chennai. "According to our knowledge, the price increase is

due to the revision of freight charges by

$ 300 per container and also the raw material prices are going up. We expect

that prices would go up further before this month-end."

Presently, the market sells cabinets for as low as Rs 700 to Rs 2,000 on the

higher side. "We have increased our prices two weeks back and the revi-sion

is between Rs 50 to 100. All leading brands have revised their prices, except

for some few local products. This is the time for the local products to push

their sales offering at a lo-wer price to clear the inven-tory," said an

official of a lead-ing brand promoted from Sin-gapore. "The cost price of

raw materials has gone up in the international market."


"Although our import price has increased, we are not able to revise the

selling price since some resellers in the local mar-ket are offering at a lower

pri-ce. They are not long standing players and serious in business. However, all

new orders placed in the international market will reflect the price

change," said a representative of a leading Delhi-based company.

S Gopikrishna