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K. Giriprakash

Plans foray into colour TV market

MR KAMAL NANDI

Bangalore June 21 Godrej & Boyce, which is making a comeback into the consumer electronics segment, has restructured its appliances business.

The century-old company is now set to focus more on launching several products in the consumer electronics category, including a foray into the colour television segment. "We are studying the CTV market and are preparing ground work for the same," the Godrej & Boyce Vice-President for Sales and Marketing, Mr Kamal Nandi, told Business Line.

Turnover

Mr Nandi said the company expects to post a turnover of Rs 2,500 crore by 2010 in the consumer electronics' business, with the electronics business contributing 30 per cent and the appliances' business contributing the rest. The consumer electronics business expects a turnover of Rs 1,400 crore during the current fiscal.

Mr Nandi said the company has shifted all its plants in Mumbai to Pune and Mohali and has also set up another plant worth Rs 100 crore in Pune, which is expected to become operational later this year. The plants have been shifted to reduce costs as well as for operational efficiencies.

It has also realigned its field staff and has created product heads for each of the category like refrigerators and air-conditioners. The number of regions has been increased to five from four earlier, with the new region catering to Uttar Pradesh and Madhya Pradesh.

R&D, advertising spend

The R&D spend as well as the advertising and sales' spend earmarked for the current year is about 5 per cent of the total sales of the appliances division, which is currently Rs 1,000 crore. The total turnover of the entire group is around Rs 4,000 crore as of last fiscal.

Mr Nandi said the company wants to establish itself as a leader in every segment it has entered into by 2010. Mr Nandi said while the appliances' division grew 16 - 17 per cent, Godrej & Boyce' growth was about 35 per cent. In the refrigerator business, the company's market share was around 20 per cent, which makes it the third largest.

"With the Eon range, we expect to be a clear number two next year," he said.

As per the recent ORG Marg research, Mr Nandi said, the company's refrigerator business was considered the fastest growing in the industry.

He said the company was keen to strengthen its presence in the premium end of the market as it was growing at a faster pace than the rest of the categories. While the white goods industry was growing at between 15 and 18 per cent, the premium category was growing at about 35 per cent.

"Most of our products are focused on the youth as our survey has found that they have more spending power than others," he said.

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Godrej & Boyce rejigs appliances business

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