Fueled by the uptick in demand for its premium products, consumer durable maker Godrej Appliances is expecting to close FY24 with turnover of ₹6,000 crore compared to ₹5,500 crore in FY23.

The company has registered a growth of 120 per cent year-on-year in its premium product categories.

“The industry grew between 10 to 12 per cent while Godrej Appliances grew between 16 to 18 per cent last year. The growth is driven by the premium segment. Air-conditioners as a category are also driving growth as consumption is increasing significantly given the impact of climate change and pollution in the country,” said Kamal Nandi, Business Head and Executive Vice President – of Godrej Appliances, part of Godrej & Boyce to businessline.

Growth in the premium product segments is driven by the urban and semi-urban markets attributed to the increase in affordability of the affluent class and the younger generation upgrading to premium products with their first purchases due to easy finance.

Market share

The Mumbai headquartered company’s air-conditioner segment revenue crossed ₹650 crore in FY23 and is expected to cross ₹1,000 crore in FY24.

“The company is now at 7 per cent market share in air-conditioners and is hoping to move to double-digit in another year. Over the years we have launched a full range portfolio in air-conditioners and have introduced very differentiated technology called ‘anti-leak’. We have launched smart air-conditioners and energy-efficient air-conditioners. We are gaining market share in refrigerators which is happening in the premium segment,” he said.

Election demand

The company does not foresee an impact and dip in demand for white goods with the general election in 2024.

“The IMD predictions for the next year is that the temperatures will be higher and the need for cooling categories will only increase. We see in terms of consumption for cooling products, the growth rate is expected to be higher than 12 per cent. The industry is likely to grow by 15 per cent, Godrej Appliances is targeting a growth rate of more than 20 per cent,” Nandi said.

Rural Stress

The rural economy continued to be in pressure this year.

“The agricultural output coming in quarter four and quarter one of next year will determine the impact on how the consumption pans out in rural areas. The mass segment is not picking up and continues to be under pressure. We do see higher consumption in the rural market during summer,” Nandi added.