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Godrej Appliances eyes Rs 4,000 crore turnover this fiscal
Godrej Appliances, the consumer durables division of the Godrej Group, is eyeing a turnover of Rs 4,000 crore this fiscal, at growth of over 20 per cent.
"We are targeting Rs 4,000 crore for the year 2017-18. April was good and after that May, June, July have got impacted because of GST. With the declaration of GST rates in May, we saw a dip in demand, largely purchases by trade partners. We saw a good purchase by trade partners in anticipation of festive season. We expect this momentum to continue now and at an overall level, by the end of the year, we should be able to deliver a growth of over 20 per cent," Godrej Appliances Business Head and Executive Vice President Kamal Nandi told PTI.
The company is also expecting 30 per cent growth in sales during the current festival season.
"We have plans to launch a lot of products. We have already launched front-load washing machines, now we will be launching microwaves. With all the new launches and good consumer offers, together this should help us to drive a growth of about 30 per cent during this festive season," Nandi said.
Refrigerator segment contributes around 55 per cent to the turnover, followed by air conditioners (20 per cent), washing machines (15 per cent), microwaves (3 per cent) and service revenue about 5 per cent.
Currently, metro cities account for 35 per cent of sales, while non-metros contribute the remaining 65 per cent.
"We will see good demand coming in from tier II, tier III and R1, R2 given that monsoon deficit is only 3 per cent. That should result in good agricultural output, therefore these markets should do well in festive season," he said.
The company, which spends 5 per cent of its turnover on marketing, enjoys a market share of 15 per cent in the overall Rs 12,000 crore refrigerator industry and 10 per cent share in the estimated Rs 5,000 crore washing machine market.
Godrej Appliances is betting big on the premium space.
"Premium segment is the fastest growing category, therefore the focus is more on developing premium portfolio and cover all segments in the premium category," he said.
"There are gaps in our premium portfolio and we are bridging those gaps. By 2018, all our launches will be over, which will cover the entire premium portfolio range for all categories," he added.
The company had forayed into premium home appliances segment with the launch of NXW brand two years ago.
"Currently NXW contributes to about 10 per cent of the overall business and our target is to take it to 30 per cent over three years," Nandi said.
E-commerce accounts for 7-8 per cent of the sales and the company expects it to grow in the future.
The company entered Maldives last month with a range of environment-friendly air-conditioners and is also looking at exporting them to Nepal.