The appliances business of Godrej Enterprises Group, which includes the unlisted Godrej & Boyce and its affiliates, is targeting a sales growth of over 40% this festive season versus last year, led by the GST cuts in air conditioners (ACs), an overall distribution push and a robust line-up of products across categories.
The government has rationalised GST rates on ACs, television sets above 32 inches and dish washers to 18% from 28% earlier. This move has brought these categories in line with other white goods such as refrigerators and washing machines that are already in the 18% tax bracket. Most appliance makers have said that the step will boost consumption, coming after a difficult first half in FY26, which saw unseasonal rains hurting sales of cooling products.
Boost from GST cuts and product lineup
“While overall we are targeting a 40% sales growth this festive season over last year, for air conditioners our targets are even more ambitious, at 100% sales growth this festive season versus last year,” Kamal Nandi, business head and executive vice-president, appliances business, Godrej Enterprises Group, said.
The company has taken an 8% price cut on ACs following the GST rate rationalisation, announced earlier this month, increased distribution reach by 2,000 outlets, taking its overall network reach to 50,000 stores for the festive season and has lined up over 40 stock-keeping units (SKUs) in ACs, refrigerators, washing machines and freezers to tap into demand across segments.
Luring back the price-conscious consumer
Nandi said that while high-end products will continue to see strong demand, led by the overall premiumisation trend in consumer durables, the GST cuts may see consumers in mass categories come back into the market, something that has been missing for the last few years as price-conscious consumers have been holding back on purchases due to financial uncertainties.
Consumer durable players including Godrej are also aggressively pushing festive offers including zero down-payment schemes, low equated monthly installments (EMIs) and comprehensive warranty schemes to encourage consumers to make purchases this year.