LG, Panasonic India reviewing prices after budget excise duty cut

Consumer durable firms Panasonic India and LG India on Monday said they are assessing the impact of excise cut on capital goods and reviewing the situation before deciding on passing the benefits to the consumer.

"Post the budget announcement regarding excise cut, we are closely observing the market dynamics and reviewing various aspects regarding pricing," LG India Managing Director Soon Kwon said in a statement.

Terming the interim budget as a positive step, Kwon said it would help to improve the market conditions and will boost the manufacturing sector.

"This will generate a positive consumer sentiment and encourage new buyers in the consumer durable sector," he added.

Earlier on Monday, finance minister P Chidambaram proposed reducing excise duty on capital goods from 12 percent to 10 percent.

"As far as prices are concerned, we are in the process of studying and assessing the impact. This two percent cut in excise is a welcome change even though it is likely to have diminutive impact on prices," Panasonic India Managing Director Manish Sharma said.

The reduction in excise duty will help stabilise and provide growth opportunities to the industry which has been witnessing a slump for some time now, he added.

Last week, Panasonic India introduced two features phones for the country, namely the EZ180 and EZ240, priced at Rs. 1,350 and Rs. 1,790 respectively.

LG on the other hand, on Monday introduced three new budget Android smartphones, in its new L Series III range. The devices, namely L90, L70 and L40, are scheduled to be unveiled at MWC 2014.