Godrej Appliances aims for 2x growth in air conditioner sales over last year on the back of launch of a wide range addressing all segments including introduction of its leak-proof technology. It is also pinning its hopes on projections of a long summer season.

Kamal Nandi, Business Head and Executive Vice-President, Godrej Appliances, part of Godrej & Boyce said, “We are aiming to garner revenues in the range of ₹1,200 crore-1300 crore from air conditioners segment alone in FY 24. We expect to end FY23 with revenues of about ₹600-650 crore from AC segment. We are looking to garner 2x growth in sales.”

Aiming for 20 per cent growth

Overall, Godrej Appliances is targeting a growth of 20 per cent with an aim to garner revenues of about ₹6,300 crore-6400 crore in FY 24, he added. The company expects to end FY 23 with revenues of about ₹5,200 crore.

The consumer durable major is offering a range of over 25 SKUs in the air conditioner segment this year which includes products in the fixed speed and windows AC segment. “We are launching the leak-proof technology in the 1.5 tonne split AC segment which has a high contribution to the overall AC segment. Nearly 85 per cent consumers have faced leakage issues. Our trade partners have shown a very encouraging response and believe this will be a game-changing technology in the industry,” he added. Godrej Leak Proof Split AC will soon be available at an MRP of ₹48,900 across stores and e-commerce platforms.

Nandi said that the company aims to increase the contribution of air conditioners to its overall revenues and garner a bigger market share. “We are offering a much wider range of air conditioners this year, we expect the category’s contribution to jump to 20-22 per cent in FY 24 from the current 14-15 per cent,” he added.

Scorching summers and pent-up demand helped air conditioners become the fastest growing category in the durables space in FY23. “We began manufacturing air conditioners from November onwards in preparation for the upcoming summer season. We have also increased production capacity for ACs to 0.6 million from 0.4 million units earlier,” he added.

Responding to a query on the impact of inflationary challenges, Nandi said, “We believe demand for cooling products in the upcoming summer season will be strong even at the entry-level as consumers are willing to spend on necessity-based products aided by financing schemes.”

Nandi said with all indications of a longer summer season the industry is expected to clock 25-30 per cent growth in the upcoming summer season. Air conditioner penetration even in urban regions is just about 15-16 per cent, much lower compared to other appliance categories.

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