The Hindu Business Line : Godrej appliances division focusing on consolidating biz

Chennai, Dec. 19 Godrej & Boyce’s appliances division is focusing on consolidating its business and achieving the top position in the refrigerator and air-conditioning markets. It is training its sights on capturing the leadership position in refrigerators by next year.

Speaking to a group of mediapersons from Chennai visiting its factories at Shirwal (near Pune) and Mumbai, Godrej officials said the company aimed to be among the top two players in cooling, its core competence, and among the top three in the other segments. The company also makes washing machines, microwave ovens and DVD players and will launch TVs in a pilot project slated for mid-2008.

Mr George Menezes, Chief Operating Officer, Appliances Division, Godrej & Boyce Manufacturing Co Ltd, said the company, to be able to hold its own against global giants such as LG, Samsung and Whirlpool, “is being different on a scale where they cannot compete with us.” To this end, it is working on “offering technology which is relevant to the Indian consumer, products which are down-to-earth and which will touch her heart and soul,” he said.

The company will also make a foray into small kitchen appliances as well as commercial cooling products such as freezers and cool cabinets — it is now identifying opportunities in these segments.

Mr Menezes also said other priorities for the company included constantly improving the energy efficiency of its appliances. It is also exploring use of new materials for refrigerators for better formability and finish and new technology to make the refrigerator compressors noiseless, he added.

Market share

Godrej has 20 per cent share of the refrigerator market, third after LG and Samsung which have 24 and 23 per cent. In ACs, it has 7 per cent share. It is augmenting capacity at its Shirwal plant to produce 2.5 lakh refrigerators — this will increase its total refrigerator capacity to 18.5 lakh units per annum.

As of now, this plant can make six lakh refrigerators and its Mohali facility, 10 lakh units. The Shirwal plant also makes washing machines.

The company has been taking steps to make itself more visible and connect better with today’s youth, said Mr Kamal Nandi, Vice-President (Sales & Marketing), Appliances. It is the only company to make refrigerators and washing machines in various colours.

It has also signed on actor Preity Zinta as brand ambassador.

It has increased ad spend from Rs 60 crore last year to Rs 100 crore this year, said Mr Ramesh Chembath, General Manager (Marketing).

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