Improved consumer sentiments and stability in prices might lead to better air-conditioner sales in the first quarter of this fiscal, a senior official of Godrej Appliances.
“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 too,” said Kamal Nandi, business head and executive vice-president, Godrej Appliances. He was speaking at the launch of the company’s eco-friendly AC range. Raw material prices, crude and currency exchange levels were also stable, he added.
Demonetisation and roll-out of GST had been a dampener on AC sales. Hike in crude prices and currency volatility further impacted sales last year. The festive months, too, saw lower-than-expected sales in view of depressed consumer sentiments following price hike on account of high fuel prices.
Nandi said Godrej had been bettering industry growth rates in its appliances’ business with a 12.5 percent growth rate in the first 10 months of 2018-19 against industry’s single-digit rates. Its business is across five products — ACs, refrigerators, washing machines, microwaves and chest refrigerators. Godrej Appliances, which reported a turnover of Rs. 3700 crore in 2017-18, is expecting a Rs. 4300 crore turnover this fiscal, according to Nandi.
This higher sale is attributed to new launches with a better focus on getting the latest technology. Revamping of offerings had also been done. This apart, the focus had been on after-sales service too.
Godrej currently has 4.5 percent market share in India’s Rs. 14,000-crore AC market. It is targeting a 6 percent share in two years and 10 percent in five years.―The Hindu