Godrej Appliances is eyeing Rs 4,000 crore turnover in the current fiscal, a growth of over 20 per cent year-on-year, in the hope that good monsoons across the country and salary hikes following the implementation of 7th Pay Commission recommendations will boost demand.
“This year we are expecting a topline of Rs 4,000 crore. We ended last year at around Rs 3,250 crore. With a good monsoon and 7th Pay Commission, I am sure the discretionary spend and the disposable income in the hands of the consumer will be much higher,” Godrej Appliances Business Head and Executive Vice President Kamal Nandi told PTI.
The company is also expecting a 15-18 per cent growth in sales during the current festival season.
“Festive demand will be better this year than last year. Last year, we experienced festive demand of 7-8 per cent and this year we are expecting it to be anywhere between 15-18 per cent. That is the kind of growth we are expecting, double of last year,” he said.
The company, which spends 5 per cent of its turnover on marketing, enjoys a market share of 14 per cent in the overall Rs 13,500 crore refrigerator industry, 10 per cent share in the estimated Rs 5,100 crore washing machine industry.
It has 6 per cent market share each in ACs and microwaves. The AC industry is estimated to be at Rs 10,500 crore, while the microwave market size is estimated to be Rs 900 crore.
With consumers becoming aspirational, the company is focusing on premiumisation across all segments.
“Premiumisation is something that people are seeking and that is happening across segments. We are seeing that people are seeking premium products…because the affordability is going up. Even at entry level, people don’t want to go to the basics but want something aspirational. Premiumisation is the strategy that we have adopted across segments,” Nandi said.
Godrej Appliances, which forayed into premium home appliances segment with the launch of NXW brand last fiscal, is planning to launch washing machines and microwave ovens under the new brand and expects NXW to contribute 20 per cent to the turnover in the next three years.
“NXW is targeted to the premium-most segment and there the potential is growing faster than any other segment. Today, the segment is about 10-12 per cent of the Rs 30,000 crore appliances industry and it should grow to 20 per cent plus by 2020,” he said.