Godrej Appliances enters retail space, to open outlets

Written by Timsy Jaipuria | Neha Pal | Neha Pal | New Delhi | Updated: May 19 2011, 07:57am hrs
Making an entry into to the retail space, Godrej Appliances, the consumer durables division of Godrej group, is all set to open company exclusive brand outlets in the country. Currently, Godrej does not have any such outlet and is present through 19,000 local mutli-brand outlets across the nation which is growing at the rate of 18%-20% on a yearly basis. The company is also expecting to clock 35% growth in sales to R2,700 crore this fiscal through a slew of initiatives, which include ramping up its presence in smaller cities and expanding its product portfolio. Starting with West and Southern India, the company will open 15-20 such stores on a franchise model by the end of this fiscal. Godrej Appliances vice-president (sales and marketing) Kamal Nandi told FE such a step will further widen the base and penetration of the brand. Apart from this, the company is also looking to have a pan-India presence in categories like television and water purifiers. "We are going to have a phased-manner launch of the television sets across segments including LCDs and LEDs and will have a pan-India presence by next year, Nandi said.

The company's turnover is R2,000 crore. "Godrej is expecting a 40% increase in the sale of air-conditioners, 50% increase in the sale of washing-machines, and 25% increase in the sale of refrigerators, Nandi said. He said, "Out of the total revenue of Godrej, 60% of the turnover comes from refrigerators, 18% comes from airconditioners, 10% from washing-machines, 5% from microwave and 4-5% comes from colour TVs.