Delhi-based Intex Technologies is evaluating a 4–5% increase in air conditioner prices as rising LPG-linked input costs push up manufacturing expenses, Keshav Bansal, Director, Intex Technologies, said.

“We are evaluating a price increase in the range of 5–7% in response to sustained input cost pressures,” Bansal said. “We have absorbed a significant portion of the cost impact so far, but some pass-through is becoming necessary.”

Price pressure spreads

Industry sources said the current round of cost pressures is likely to trigger price hikes across segments, with both premium players such as LG and Samsung and mid-market brands including Voltas, Lloyd, Godrej and Kelvinator expected to take calibrated increases in the coming weeks.

The mid-market consumer durables maker expects the current price cycle to accelerate a shift in demand toward more affordable products, with consumers moving away from premium brands as price gaps widen.

The company reported revenue of around ₹450 crore in FY26, up about 36% from ~₹330 crore in FY25, and is targeting ₹750–800 crore by FY27. Part of this growth is expected to be supported by demand shifts in categories such as air conditioners and smart TVs, where feature parity is relatively high but affordability remains a key purchase driver.

The value gap

Analysts say the downtrading trend highlighted by Intex is rooted in a widening and evolving price gap between premium and mid-market brands.

In the key 1.5-ton 3-star inverter AC segment, value brands such as Intex, Voltas and Lloyd are typically priced at ₹32,000–₹38,000, compared with ₹44,000–₹55,000 for premium players like LG, Samsung and Panasonic—a gap of ₹12,000–₹17,000, or roughly 20–35%.

This spread forms the core “value hook” that companies like Intex are betting on to drive incremental volumes as consumers trade down. While price hikes could narrow the gap in percentage terms, analysts note that in absolute rupee terms, the difference may continue to widen as both segments take increases.

For instance, a 5% hike on a ₹50,000 premium model adds ₹2,500, compared with about ₹1,750 on a ₹35,000 mid-market model—effectively expanding the price gap.

Even so, the margin for error remains. A sharper increase at the mid-market end could begin to erode this advantage over time. For now, however, analysts say the gap remains wide enough to sustain downtrading—particularly in Tier 2 and Tier 3 markets—supporting Intex’s broader ambition to scale revenues to ₹750–800 crore by FY27.

Costs building up

Commercial LPG prices, now nearing ₹1,000 per cylinder, are pushing up costs across the supply chain. Suppliers of ceramics, glass and metal coatings are passing on higher fuel costs, while plastics and polymer prices have risen 10–15%. Industry executives also point to elevated copper and aluminium prices and to gaps in localisation of components as adding to the cost burden.

Premium players have largely held headline prices steady during the peak summer season, relying instead on reduced discounts or earlier calibrated increases to protect volumes. That approach is now beginning to shift as cost pressures persist.

“For a large section of consumers, price remains the primary decision driver,” Bansal said. “As premium products become more expensive, consumers are willing to shift to brands that offer similar features at a more accessible price point.”

The value-bridge strategy

ntex is positioning itself as a “value bridge” between premium brands and low-cost unorganised players, targeting consumers seeking higher-end features at more affordable prices.

At the core of its strategy is “value engineering”—leveraging global component ecosystems and optimising product configurations to reduce costs. This allows the company to offer what it describes as “80% of flagship features at a fraction of the price,” without heavy R&D investment.

.Distribution remains a key differentiator. Intex has a network of over 25,000 dealers and reaches more than 18,000 pin codes, giving it a strong presence in non-metro markets where assisted selling and after-sales service are critical to purchase decisions.

A contested middle

This dynamic is beginning to reshape the industry’s competitive structure into three distinct layers—premium, value-driven mid-market, and low-cost assemblers—with the middle segment emerging as the most contested.

However, the segment is also highly competitive, with global brands expanding entry-level portfolios and domestic players competing aggressively on price. Premium manufacturers continue to defend their base through financing schemes and tighter price-band management, which could limit the extent of downtrading.

For Intex, scaling up will depend on execution—maintaining product quality, ensuring supply consistency and leveraging its distribution network to convert demand into sustained volumes. The company remains debt-free and cash flow-positive, giving it the flexibility to absorb part of the cost pressure.

Published on May 5, 2026