Godrej Appliances has registered decent growth so far and hinted at 20 percent growth during the current fiscal. The appliances business has outlined plans to launch a number of new products across different segments, while plugging into newer segments where it has no presence.
Kamal Nandi, Business Head and Executive Vice-President, Godrej Appliances, said, “The Rs 45,000-46,000 crore industry, which had grown by about 14-15 percent last year, has been impacted by demonetisation and GST implementation in the first half, when the growth slipped to about 5-6 percent. However, we expect the industry to grow by about 10-12 percent by the end of the year, with second half likely to grow at a much faster rate.”
Godrej Appliances, which closed last year with business of Rs 3,300 core, expects to cross a turnover of over Rs 4,000 crore, achieving a growth of over 20 percent as against 24 percent it recorded last year, he said.
Launching its range of front-load washing machines with new allergy protect feature, Nandi said, “With allergy protect and eco balance feature in our front loading washing machines, we have raised the bar on innovation. We are already among the fastest growing brands in the washing machine category and with this new range, we intend to consolidate our position.”
Of the total Godrej Appliances business, 55 percent comes from refrigerators, 15 percent from washing machines, 20 percent from ACs and about 5 percent from service business.
“We are at the forth place in the consumer appliances business in the country and expect to make it to the third slot over the next two-three years as we expand our product range and also enter new segments where we are currently not present,” he said.
Referring to GST, where the consumer products come under 28 percent slab, he said, “We hope the government brings it down to 18 percent slab. Representations have been made in this regard.” - The Hindu Business Line