Bouyed by the demand from the southern states, especially for its range of air-conditioners, consumer goods major Godrej Appliances is mulling setting up of a manufacturing facility in south. The whitegoods major is considering strategic locations in states like Tamil Nadu, Andhra Pradesh and Karnataka. ?The new facility would primarily cater to the demand from the southern market which would also help the company cut down a major chunk on logistics cost,? said Kamal Nandi, vice-president, sales and marketing, Godrej Appliances, without divulging details about the investment and timeline. ?Once we set up the facility, we would be able to double our capacity in ACs, refregrators and washing machines, from the current 25 lakh per annum. We will be ramping up production lines at the existing facilities as well. With aggressive expansion plans in Tamil Nadu, it aims to become among the top three players,? he said. The company, which has a market share of 9.2% in the 35 lakh per annum air-conditioner market has clocked a CAGR of close to 50% in Tamil Nadu and is the largest market for the company.
? Tamil Nadu is our largest market and the age bracket of the consumer group has shifted to 25-30 from the earlier 35-45. The other advantageous position is that with rapid urbanisation, consumers in Tamil Nadu have started buying lifestyle gadgets.?
