Godrej arm sees 20% sales growth
- New Delhi: Godrej Appliances, part of the diversified firm Godrej & Boyce Mfg. Co expects a 20% increase in gross sales at around Rs 6,200 crore in FY24, according to a top company official.
- The company is expecting contribution from its premium products of up to 40% from 35% at present, Godrej Appliances business head and executive vice president Kamal Nandi said. "The gross sales of Godrej Appliances is expected to be around Rs5,200 crore in FY23 and with a close 20% growth, we would be around Rs 6,200 crore," Nandi told said.
- The company, which on Thursday unveiled a new range of residential air conditioners, expects a two-fold growth from this vertical to Rs 1,200 crore. "We are expecting a severe summer and may be an elongated one and as result, demand for the cooling category will be high," he said, adding, this will not be high from last year but also better than pre-Covid years.
- Last year, the demand tapered down due to intermittent rains and the inflationary trend also forced the companies to go for the revised price hikes, he added. "Sentiments are much better between last year and this year.
- About inflation, Nandi said it has tempered down and has come to a manageable level. "Going forward, we do not see prices moving up beyond 3-5%, given that China opens up... The industry would be able to manage it and not adversely impact the demand," he said.
- On probable supply disruptions in China, which is a major supplier of components to the Indian industry, and the high ocean freight charges, Nandi said in the AC segment, lots of localization has happened now such as PCBs (Printed Circuit Boards) being locally assembled, and backward integration of several components being increased.
- Godrej Appliances operates in categories such as ACs, refrigerators, washing machines and some other small home appliances.
- It also operates in categories such as chest freezers, and medical refrigerators, among others. Presently, AC contributes around 15% of the overall gross sales of Godrej Appliances and is expected to rise to around 22%, Nandi said.