The Hindu Business Line : Godrej to invest Rs 100 cr in refrigerator unit

The appliances division of Godrej & Boyce Manufacturing Co Ltd has firmed up plans to invest Rs 100 crore in a refrigerator manufacturing facility at Sherwal near Pune.

The plant will have a capacity to manufacture five lakh refrigerators every year, Mr George Menezes, Chief Operating Officer of Godrej's appliances division, told newspersons here on Thursday.

Mr Menezes said the company's refrigerators' sales had gone up considerably after the introduction of ZOP technology refrigerators in April this year. Consequently, the sales had gone up by 27 per cent in the first quarter of the current fiscal over April-June 2005.

According to him, product innovation based on strong R&D would drive the company's growth. "We have a strong base for design and manufacturing. Our focus will be on introducing innovative products every quarter. We are also working on repositioning our brand as more contemporary with relevant products," he said.

The company would spend five per cent of its turnover on repositioning the brand even as a similar amount would be spent on R&D, he added.

On the products side, the focus would be on fast-growing segments such as refrigerators, air-conditioners, microwave ovens and DVD players.

Softening of product prices to garner market share has been ruled out.

Mr Menezes said the appliances division of Godrej hopes to generate a turnover of Rs 1,000 crore in 2006-07, up from Rs 750 crore recorded in 2005-06.

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