Companies

Godrej Appliances eyes 20% growth in FY20; upbeat on Onam sales

V Sajeev Kumar Kochi | Updated on July 31, 2019 Published on July 31, 2019

Godrej Appliances is looking at a turnover of ₹5,200 crore.   -  Bloomberg

Godrej Appliances is looking at a 20 per cent growth this fiscal, thanks to renewed momentum in the consumer appliances business in the first quarter.

The company is looking at a turnover of ₹5,200 crore against ₹4,300 crore last fiscal, said Kamal Nandi, Business Head and EVP, Godrej Appliances.

Unlike last year, sales in the cooling categories such as air-conditioners and refrigerators rose in the first quarter due to a rise in temperatures, he said. While AC sales grew 15-18 per cent, that of refrigerators rose 10-12 per cent. The company expects the same momentum in the second quarter, Nandi said.

Last year, the demand for consumer appliances was almost flat across the country, and particularly Kerala, due to natural calamities. With the encouraging first-quarter results, Nandi said, the company is pinning greater hopes on the Onam season in Kerala, which sets the tone for festivities in the entire nation.

“However, we are slightly apprehensive on the overall market conditions due to muted purchase and demand, especially in the automobile and FMCG sectors. This could be a challenge going forward,” he told BusinessLine on the sidelines of the launch of Onam consumer offers in the Kerala market.

But he expressed hope that the government’s efforts to ease liquidity conditions in NBFCs and cut interest rates will perk up consumer demand in the ensuing season.

Kerala is a strategic market for Godrej with a contribution of 8-9 per cent to its business turnover. With a strong product line-up and consumer offers, Nandi said, the company is targeting a business of ₹225 crore in the State with a 30 per cent growth in Onam sales.

Published on July 31, 2019
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