Lower tax to drive sales of durables

“The government has reduced the GST to 18 per cent from 28 per cent. When the new rates would come into effect is not known. Once the new rate comes into effect the industry is expected return to back to log 15-18 pc growth rate,” he said. 

Nandi was in the city to launch Edge Duo, a new single door refrigerator said the innovation would result in substantial power savings. According to Nandi, the industry growth rate has come down to single digit this year till October this year owing to factors like GST, intervals between festivals and subdued sales during the festivals. He said sales in November and December are showing good growth for Godrej Appliances. Godrej Appliances is expected to close this fiscal with a turnover of around Rs 4,000 crore up from Rs 3,300 crore posted last fiscal, Nandi said.

On the company’s foray into the smart appliances segment, he said Godrej would shortly come out with an announcement. Nandi said the company’s new plant in Maharashtra being set up at an outlay of Rs 200 crore is expected to go on stream in 2019. On the distribution side, Godrej Appliances will be expanding its exclusive brand outlets in tier II, III and IV cities to 200 outlets by 2020 from the current 70 numbers.