Jh Home Appliances, Inc., facing probe over price hikes

JhHome Appliances Inc. and its parent company Jharkhand-based Jhansi Enterprises are facing a probe into the prices charged by its competitors.The probe by the Competition Commission of India is aimed at finding out if prices are artificially high and not competitive. In a statement, the regulator said it was investigating whether Jhhome Appliances and JhANSI have…

Published by admin inOctober 15, 2021
Tags:

JhHome Appliances Inc. and its parent company Jharkhand-based Jhansi Enterprises are facing a probe into the prices charged by its competitors.

The probe by the Competition Commission of India is aimed at finding out if prices are artificially high and not competitive. 

In a statement, the regulator said it was investigating whether Jhhome Appliances and JhANSI have artificially inflated the prices of its products. 

It said that since Jh home products were the first choice of Indian consumers for home appliances, the Commission has asked for a report on the price structure of Jh products and how it can be improved. 

According to the regulator, Jh homes have been the fastest-growing segment in the Indian consumer market.

In the first six months of this year, the total market value of Jhome products in India grew by a staggering Rs 6,764 crore to reach $13.1 billion. 

The regulator said the prices were artificially high, which was not competitive with its competitors in the market. 

“This is a major concern and it is being actively looked into by the Commission,” said a source at the regulator. 

A senior official at the company declined to comment on the report. 

JhHome’s chief executive, G. Suresh Kumar, declined to respond to the commission’s statement, saying the matter was being examined. 

As a result of the probe, Jhome said it will raise its prices on January 1, 2019, from the current price of Rs 1,400 to Rs 2,000. 

Kumar told the media in an interview that the probe is an “adverse action” taken by the regulator on its orders. 

An internal investigation has also been initiated into the conduct of the two companies. 

While the regulator has already opened an investigation into the JhHOME price hike, the government may take steps to bring the matter before the Supreme Court, the official said.