A senior company executive stated that Godrej Appliances, a homegrown business, aims to boost its top line by 30% and turn a profit of $1 billion by the end of this fiscal year.
According to Business Head & Executive Vice President Kamal Nandi, the company is “very optimistic” about the short- and mid-term prognosis for the home market. During this time, it will introduce new goods, and it plans to introduce about 50 new models across categories in FY25.
Godrej & Boyce’s Godrej Appliances division saw 60% rise in revenue during the first quarter, driven mostly by an extraordinary demand for air conditioners.
“We anticipate finishing the quarter with 50–60% growth, having grown by more than 60% in Q1. The north and east are seeing improvements, but demand in the south and west is sluggish. We anticipate closing the quarter with growth of more than 50% overall,” Nandi stated.
As some other manufacturers have reported, Godrej Appliances saw over 100% rise in sales in categories like air conditioners.
The Godrej group company has seen over 125% growth in the air-cooler category and over 25% increase in the refrigerator segment thus far in the June quarter.
“Even if consumption slows in the festive season and the September quarter, we anticipate a normal growth of about 15 per cent over last year, aiming to close the year around 30 per cent, plus growth overall,” he stated.
Godrej Appliances closed for about Rs 6,000 crore in 2023–24.
Nandi said: “We are expecting a 30 per cent increase, aiming for close to Rs 8,000 crore.”
When asked if Godrej Appliances would turn a profit by $1 billion by the end of FY25, Nandi responded, “Yes, we anticipate achieving that goal.”
Godrej Appliances works in several areas, including those for kitchen appliances including microwave ovens, washing machines, air conditioners, and refrigerators.
Additionally, it is growing its line of medical refrigerators and is active in the commercial appliance market, including vending machines.
Regarding demand, Nandi noted that equally strong demand is being observed in both urban and rural areas.
“Demand in rural areas has increased, and mass market product consumption has gone up. Although mass-market consumption is noteworthy, premium product growth is still ongoing,” he continued.
Tier-I and metro areas account for 65% of Godrej Appliances’ sales; tier-II, III, and IV markets account for the remaining percentage.
The company is experiencing its first “great summer” this year, which has boosted sales of cooling goods that use compressors. Godrej Appliances concentrated on its supply chain and logistics to accommodate the unforeseen demand.
“We haven’t seen a summertime demand spike like this since 2009–2010 and again in 2019.” 2016 saw another lovely summer. He stated, “The cooling categories have performed quite well.
Its air conditioner division accounted for about 30% of its total revenue last year; by FY25, that percentage is predicted to reach 40%.
“An additional 40% originates from refrigerators, and roughly 18% will come from washing machines.” Freezers and air conditioners provide the remaining amount, Nandi continued.
Recently, Godrej Appliances in Pirangut, Pune, increased the size of its research and development centre.
In addition, the company of the Godrej Group is growing its sales network.
“Over the last three months, we have increased our reach by about 30 per cent month-on-month,” he stated.
Godrej Appliances, which has two production facilities: one in Shirwal, near Pune, and another in Mohali, has invested more than Rs 1,200 crore over the past five to six years, mostly in product research and manufacturing.
“Today, we have a refrigerator capacity of about 3.6 million units, an AC capacity of about 0.9 million units, a washing machine capacity of about 1 million units, and a chest freezer capacity of 0.3 million units,” he stated.
Although the company exports to adjacent countries including Nepal, Sri Lanka, and other regions of Africa, Nandi noted that the home market is the company’s primary priority.