Companies

‘We are witnessing growth in Q4 this year’

Our Bureau Kolkata | Updated on March 06, 2019 Published on March 06, 2019

Kamal Nandi, Business Head & Executive Vice-President, Godrej Appliances, at a press conference in Kolkata   -  Debasish Bhaduri

According to Kamal Nandi, Business Head and Executive Vice-President, Godrej Appliances, there has been stability across both crude prices and currency levels

Improved consumer sentiments and stability in prices might lead to better air conditioner sales in Q1 of next fiscal.

Air conditioner sales witnessed single-digit growth over the last two-odd years. While for FY17 air conditioner sales grew by 7 per cent, it grew by 5 per cent over the first 10 months of this fiscal.

According to Kamal Nandi, Business Head and Executive Vice-President, Godrej Appliances, there has been stability across both crude prices and currency levels.

“Winters have been long this year. So we expect an extended summer too. Moreover, we are witnessing improved consumer sentiments which should help boost AC sales,” he told reporters during the launch of its eco-friendly AC range.

Demonetisation and the GST roll-out had been a dampener on AC sales. To top it all, crude price hike and currency volatility further impacted sales last year. The festival months saw lower than expected sales in-view-of depressed consumer sentiments.

“We are witnessing some growth in Q4 this year,” said Nandi, adding that price hikes that were due around the festive season were deferred primarily in view of poor sales. The hikes (ranging between 3-4 per cent) have been initiated earlier this year. Nandi said, “Godrej says has been able to witnessed better growth than the market. Godrej Appliances’ has seen a 12.5 per cent growth in sales over these 10 months.”

This increased sales is attributed to new launches with increased focus on getting in the latest technology; revamping of offerings has also been done. Focus has been on after sales services, as well.

Godrej currently has 4.5 per cent market share in the ₹14,000-crore air conditioner market in India. The company plans to take it to 6 per cent over the next two years and to 10 per cent over the next five years.

On the other hand, it has a 17 per cent market share in the refrigerator segment. “Godrej Appliances, which reported a turnover of ₹3,700 crore in FY18, is expecting a ₹4,300-crore turnover this fiscal (FY19),” said Nandi.

Published on March 06, 2019
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