Godrej expects 20% growth in appliances business in FY '13

Godrej expects 20% growth in appliances business in FY '13

Mumbai-based $3.3 billion (2011-12 sales) Godrej group’s appliances business is likely to post 20 per cent growth in revenues at Rs 2,400 crore in the current year, as against Rs 2,000 crore last year, with refrigeration sales expected to grow 10 per cent in volumes.

The company would roll out its new range of “green energy” refrigerators, to be jointly produced with Bosch, at its Shirwal facility near Pune next March, after the government’s new star labels are announced by the Bureau of Energy Efficiency next January, according to Godrej Appliances’s Executive Vice-President, Sales & Marketing, Kamal Nandi.

“The new range of refrigerators will increase our share of frost-free refrigerators from the current 15 per cent to 18 per cent.” His optimism also stems from hopes of stability in refrigerator prices this year, as against an increase of about 10 per cent last year, which he attributed to currency devaluation and rise in commodity prices.  
He added, “The year before that (2011) had a short summer. So these two factors dampened refrigerator sales in the last two years. We hope stability on both counts this year.” Summer season constitutes about 40 per cent of the industry’s annual sales, said Nandi.

The refrigerator market in Indiais estimated to be 90 lakh units and likely to be about 100 lakh next fiscal. For Godrej, 40 per cent of refrigerator sales come from rural markets.

In air conditioners, Godrej expects to increase its share from the current 6 per cent to about 9 per cent next fiscal. The country’s air conditioner market is currently pegged at 26 lakh and expected to be 30 lakh next year.