Godrej Appliances, a unit of Godrej & Boyce, is on track to become a billion-dollar company by the end of this fiscal year, driven by an expected 30% growth in topline revenue. The company’s Business Head & Executive Vice President, Kamal Nandi, shared this optimistic outlook with PTI, highlighting plans to launch around 50 new models across various categories in FY25.
The company recorded an impressive 60% overall growth in the first quarter of the fiscal year, fueled by unprecedented demand for air-conditioners. “We have registered over 60% growth in Q1 and expect to close the quarter at 50-60% growth. While demand is slower in the south and west, the north and east are improving. Overall, we expect to close the quarter with over 50% growth,” Nandi said. Specific segments saw significant gains, with air-conditioner sales doubling and air-cooler sales growing by 125%, while the refrigerator segment saw a 25% increase in the June quarter.
Nandi anticipates a potential slowdown in consumption during the festive season and the September quarter but expects a steady annual growth rate of about 15% over the previous year. “Even if consumption slows in the festive season and the September quarter, we anticipate a normal growth of about 15% over last year, aiming to close the year around 30% plus growth overall,” he added. Godrej Appliances closed FY24 with revenues of approximately Rs 6,000 crore and is aiming for close to Rs 8,000 crore this year. “Yes, we are expecting to reach that target,” Nandi confirmed when asked about becoming a billion-dollar company by the end of FY25.
Godrej Appliances operates across various segments, including air conditioning, refrigerators, washing machines, and kitchen appliances like microwave ovens. Additionally, it serves the commercial appliances market with products like vending machines and medical refrigerators. Nandi noted that demand is robust in both rural and urban areas, with rural demand picking up significantly. “Rural demand has picked up, and the consumption of mass market products has increased. Premium products continue to grow, but mass-market consumption is notable,” he said.
Currently, 65% of the company’s sales come from metro and tier-I cities, with the remainder from tier-II, III, and IV markets. This year has seen a particularly strong summer, boosting sales of compressor-based cooling products. “The last time we saw such a spike in demand during summer was in 2009-2010, and then again in 2019. The year 2016 was another good summer. The cooling categories have done extremely well,” Nandi explained.
The air-conditioner business, which contributed around 30% of total revenue last year, is expected to exceed 40% in FY25. Refrigerators account for another 40%, washing machines 18%, and the remainder comes from air coolers and freezers. Godrej Appliances has also recently expanded its research and development facility in Pirangut, Pune, and is broadening its sales network, increasing its reach by about 30% month-on-month over the past three months.
The company boasts a refrigerator capacity of about 3.6 million units, an AC capacity of about 0.9 million units, a washing machine capacity of about 1 million units, and a chest freezer capacity of 0.3 million units. While exports to markets like Nepal, Sri Lanka, and parts of Africa are part of its strategy, the primary focus remains on the domestic market, Nandi added.
