Godrej Appliances today said it is targeting about 20 per cent growth in topline in the current fiscal to Rs 4,000 crore from Rs 3,300 crore in FY17. According to Kamal Nandi, Executive Vice President and Business Head, Godrej Appliances, the home appliances industry was hit by demonetisation during the third quarter of the last calendar year and this year the growth would be in the range of 10 to 12 per cent.
“Last year we clocked revenue of Rs 3,300 crore. This year we are targeting Rs 4,000 crore. We are looking at 20 per cent growth. The industry is expected to grow at 10 to 12 per cent with better performance expected during the second half of the year as compared to last year,” Nandi said at a press conference.
According to him, refrigerators contribute about 55 per cent and air conditioners around 20 per cent to its overall revenue.
The GST slab for appliances was fixed at 28 per cent while the pre-GST the average tax across various states under the VAT regime was ranging from 23.5 per cent to about 26 per cent. “During the VAT regime, the average tax was 24.5 per cent. Against that 28 per cent (of GST) means 3.5 per cent net increase. The industry has represented to the Government to bring the slab down,” he explained.
He said the industry’s growth rate slipped to about 5 to 7 per cent in the first half of the current fiscal due to demonetisation from 15 per cent in the same period of the previous year, he added. The consumer durables manufacturer today launched a new range of front-load fully automatic washing machines under its sub-brand Godrej Eon here. These machines are equipped with a new feature called Allergy Protect, a superior wash programme, certified by Allergy UK, that is effective in getting rid of seven common allergens and bacteria, Nandi said.