Godrej Appliances forays into air-cooler segment

Meenakshi Verma Ambwani New Delhi | Updated on January 23, 2020

Kamal Nandi, Executive Vice-President and Business Head, Godrej Appliances

Godrej Appliances aims to garner 15 per cent market share in five years

Godrej Appliances has decided to foray into the air-cooler segment, in line with its strategy to expand its cooling product portfolio and deepen the brands’ penetration in smaller towns and rural region. The company is eyeing a market share of 15 per cent in this category in the next five years.

Kamal Nandi, Executive Vice-President and Business Head, Godrej Appliances, said, “After prices of air-conditioners have increased due to the tightening of energy efficiency norms, a section of first-time buyers are seeking more affordable solutions and downtrading to air-coolers. We believe the air-cooler category will continue to see strong demand in the coming years.”

Entry-level AC prices, for instance, have risen up by ₹5,000-6,000 due to tightening of energy efficiency norms, making it an expensive proposition for first-time buyers.

“It is also a logical extension of our expertise in the cooling solutions space and we think we can add a lot of value to the segment,” he added. Besides affordability, factors such as urbanisation, rising temperatures and pollution levels are also supporting the growth of the air-cooler segment, Nandi said.

The air-cooler segment, which was clocking a growth of 17 per cent in the past, is expected to grow at a CAGR of 20 per cent by 2022.

Sanjeev Jain, National Sales Head, Godrej Appliances, said, “In the first year, we expect to sell about one lakh units of air- coolers and garner a market share of about 4 per cent. In the next five years, we aim to gain a market share of 15 per cent in the segment.”

Besides leveraging on its existing retail distribution network, modern trade stores and e-commerce, the company will also look at selling its air-cooler range in small appliance stores channel.

Relying on third-party manufacturer

For now, the company will rely on third-party manufacturer, for making the air-cooler range, in line with existing industry practices. “As the air-cooler business scales up, we will look at manufacturing these products on our own in the next three years,” Nandi added.

Godrej Appliances said its offering a differentiated product proposition to consumers by offering inverter technology in air- coolers to be able to deliver cooling more efficiently with higher power savings.

Asked about growth trends for air-conditioner sales in the upcoming summer season, Nandi said, “We are witnessing early signs of demand for air-conditioners in the southern region. We anticipate the AC sector to witness a growth in excess of 20 per cent this summer season.”


Published on January 23, 2020

Follow us on Telegram, Facebook, Twitter, Instagram, YouTube and Linkedin. You can also download our Android App or IOS App.

This article is closed for comments.
Please Email the Editor

You May Also Like