Hyderabad: Home appliances company Godrej Appliances is targeting about 20 per cent growth in its revenues this fiscal. It is aiming to clock Rs 4,000 crore this fiscal compared to Rs 3,300 crore in FY17.
Kamal Nandi, executive vice president and business head, Godrej Appliances, who was in Hyderabad to launch a range of front load washing machines with new allergy protect feature, under its sub-brand Godrej Eon, said, “We are creating needed capacities for our operations. The company has doubled the washing machines capacity by a second plant in Mohali with an investment of Rs 200 crore and increased 30 per cent capacity of its refrigerators.”
Besides domestic market, Godrej is finding good potential in neighbouring markets such as Nepal, Sri Lanka and Bangladesh. Refrigerators contribute 55 per cent and air conditioners about round 20 per cent to its total revenue.
Talking about the market trends, he said, the home appliances segment took a hit by note ban during the third quarter of the last calendar year and this year the growth is expected to be in the range of 10 to 12 per cent. The GST slab for appliances had been fixed at 28 per cent while during the pre-GST, the average tax across states under the VAT regime ranged between 23.5 per cent to about 26 per cent. The industry has made a representation to the Government to bring the GST slab down.
The industry’s growth rate fell to about 5 to 7 per cent in the first half of the current fiscal due to demonetisation compared to the 15 per cent level during the same period of the last fiscal.
Rakesh Sial, Product Group Head, Washing Machines, Godrej Appliances, told Telangana Today, “Washing machines are contributing about 15-16 per cent to the overall appliances revenues. Within this category, the company has three segments- semi-automatic, fully automatic and front loading. The industry has grown by 10.8 per cent while the company has grown by 13.5 per cent. India’s washing machine market is estimated at 60 lakh units in volume terms per annum.”