Companies

Godrej Appliances bets big on energy-efficient air-conditioners

V Sajeev Kumar Kochi | Updated on January 15, 2018 Published on March 27, 2017

Kamal Nandi, Business Head and Executive V-P, Godrej Appliances

Eyes lower tax slabs in the post-GST era to boost sales

Godrej Appliances, a leading player in the air-conditioner segment, foresees huge growth potential for energy-efficient air conditioners in the coming years, thanks to the Government’s push for power-efficient ACs.

From January next, it has been made mandatory for all AC brands in the country to shift from Energy Efficiency Ratio (EER) to Indian Seasonal Energy Efficiency Ratio (ISEER). This will help bring down energy consumption of ACs to as low as 40 per cent, thereby enabling brands to move fast towards more energy-efficient products, Kamal Nandi, Business Head and Executive Vice-President, Godrej Appliances, said.

Despite the fact that use of AC in the country has increased by a CAGR of 20 per cent, the biggest impediment for consumers is the high power consumption. This has been a concern not only to the industry but for the government as well, he said.

“We have already brought out energy-efficient products and the AC with ISEER 5.2 rating launched last year was well accepted in the market. This year, we have introduced ACs with ISEER 5.8 rating which is more power efficient than any other existing brands in the market,” Nandi, who was here to open the 70th Exclusive Brand Outlet (EBO) at Kottayam, told BusinessLine in an interaction.

Market size

According to him, the air-conditioner market size in India is estimated at 5 million units and valued at ₹10,000 crore. However, the market is highly fragmented with the presence of more than 30 players.

The company, he said, is pinning hopes on lower tax slabs in the post-GST era to boost sales. Since appliances are a necessary product and not a luxury one, requests have been made to the government to put all appliances in the 18 per cent tax category and a further lower tax slabs for energy-efficient products.

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Published on March 27, 2017
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