This latest announcement takes the tally of Godrej Appliances’ investment in capacity and technology expansion to Rs. 1100 Crore over a period of six years
Godrej Appliances plans to invest Rs. 700 Crore by 2022. With this investment, the brand is aiming to increase the annual appliance production capacity to 65 lakh units. The company aims to introduce newer technologies and carry out backward integration, besides adding capacity. This latest announcement takes the tally of Godrej Appliances’ investment in capacity and technology expansion to Rs. 1100 Crore over a period of six years.
Godrej Appliances plans to double the current capacity for both fully automatic top load washing machines and semi-automatic washing machines, at its Shirwal and Mohali plant, respectively. The company will also unveil a new product line for fully automatic front load washing machines with 4 lakh annual capacity. As for the refrigerator category, the brand further intends to augment the production capacity of both its premium range and mass range by 33%.
The investment is also directed towards manufacturing of power-efficient chest freezers and 30 lakh units of compressors utilising newer technology in the product and processes. Part of the outlay will be for backward integration of air conditioners at the Shirwal factory.
The capacity enhancement plan for both the manufacturing units complements Godrej Appliances’ overall business strategy. The brand decided to up the ante as a strategic manoeuvre to amplify the on-going premiumization focus.
“We have always been at the forefront of innovation and customer delight. Despite the sluggish industry backdrop, we have delivered good growth rate in the past and we will strive to continue on that trajectory. This investment broadens Godrej Appliances’ capability and reflects our commitment to providing customers with exceptional products, while attesting our alignment towards ‘Make in India’. Through this expansion, we aim to take brand Godrej to even greater heights utilising our strength of manufacturing expertise. The proposed expansion once complete will allow us to meet the increasing demand for premium products from Indian customers better,” Kamal Nandi, business head and EVP, Godrej Appliances said.