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Bucking the sales slowdown in the consumer appliances segment post demonetisation and implementation of the GST regime, Godrej Appliances has registered decent growth so far and hinted at 20 per cent growth during the current fiscal.
The appliances business, which is part of Godrej & Boyce Mfg Co Ltd and which has invested in expansion of existing plants and in an additional manufacturing facility, has outlined plans to launch a number of new products across different segments, while plugging into newer segments where it has no presence.
Growth forecast Kamal Nandi, Business Head and Executive Vice-President, Godrej Appliances, said, “The ₹45,000-46,000 crore industry, which had grown by about 14-15 per cent last year, has been impacted by demonetisation and GST implementation in the first half, when the growth slipped to about 5-6 per cent. However, we expect the industry to grow by about 10-12 per cent 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 ₹3,300 core, expects to cross a turnover of over ₹4,000 crore, achieving a growth of over 20 per cent as against 24 per cent it recorded last year, he said.
New range 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 per cent comes from refrigerators, 15 per cent from washing machines, 20 per cent from ACs and about 5 per cent 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 per cent slab, he said, “We hope the government brings it down to 18 per cent slab. Representations have been made in this regard.”
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