Godrej Appliances is looking at a 20 percent growth this fiscal, thanks to renewed momentum in the consumer appliances business in the first quarter.
The company is looking at a turnover of Rs. 5,200 crore against Rs. 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 percent, that of refrigerators rose 10-12 percent. 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 BusinessLineon 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 percent to its business turnover. With a strong product line-up and consumer offers, Nandi said, the company is targeting a business of Rs. 225 crore in the State with a 30 percent growth in Onam sales.―The Hindu Business Line