Godrej Appliances has set its sights on being a top-three player in its segment, backed by new models, a strong service proposition and an expanding distribution network,
The company, a unit of Godrej & Boyce, expects business to grow above the industry average of 15-20 percent during the current fiscal, while turnover is expected to touch Rs 5000 crore. It is also mulling a foray into kitchen appliances and air coolers.
Speaking to The Telegraph, Kamal Nandi, business head & executive vice-president, Godrej Appliances, said the company’s growth this year will be led by air-conditioners and washing machines, while refrigerators will show an uptrend.
This optimistic outlook, particularly in the highly competitive air-conditioner segment, comes after two disappointing years for the appliance industry, which grew in single digits because of disruption caused by the GST followed by intermittent rains in the first quarter of last year.
Consumer sentiment was also weak during the fesrival season.
Nandi, however, pointed out indications since March have been positive in terms of the demand environment.
“The weather is supporting us and it will back us in the near future. Based on the weather forecast, we are expecting an elongated and a scorching summer this year. There is also a prediction of an El Nino which could result in an elongated summer. That gives us confidence that the cooling categories will do well,” he said.
Nandi said the appliances industry would double its growth to 10-12 percent this year.
In 2018-19, the company registered a growth of around 13 percent which was twice the industry growth of 6-7 percent. One of the factors which has helped the company are the product launches.
Nandi said superior after-sales service proposition has also been a key differentiator that has driven its growth.
“We are the top service brand in the industry as certified by leading third-party survey. We have the widest network and are accessible 24X7 for 365 days.,” he said.―Telegraph India