Buoyed by the surge in demand for its premium products, Godrej Appliances, a leading consumer durable maker, anticipates closing FY24 with a turnover of Rs6,000 crore, up from Rs5,500 crore in FY23. The company has achieved an impressive 120 per cent year-on-year growth in its premium product categories. Here is a detailed report on SURFACES REPORTER (SR).
Strong Growth in Premium Products
According to Business Head and Executive Vice President, Godrej Appliances, Kamal Nandi’s statement, the industry expanded by 10 to 12 per cent, while Godrej Appliances experienced a robust 16 to 18 per cent growth, driven predominantly by the premium segment. Air-conditioners, in particular, have played a significant role in this growth, with increased consumption attributed to climate change and pollution impacts in the country. The surge in premium product segments is reportedly primarily observed in urban and semi-urban markets, fueled by increased affordability among the affluent class. The younger generation, too, is contributing to this trend by opting for premium products as their initial purchases, facilitated by easy finance options.
In the air-conditioner segment, Godrej Appliances surpassed Rs650 crore in revenue for FY23 and is reportedly poised to exceed Rs1,000 crore in FY24. With a current market share of 7 per cent, the company aims to reach double digits within a year. Nandi also highlighted the introduction of innovative technologies, such as anti-leak features, smart air-conditioners and energy-efficient models, as contributing factors to the company’s market share growth.
Anticipating continued growth, the company remains optimistic about the demand for white goods despite the general election in 2024. In his statement, Nandi emphasized that IMD predictions indicate higher temperatures, leading to an increased need for cooling products. Godrej Appliances is reportedly targeting a growth rate exceeding 20 per cent, outpacing the expected 15 per cent growth rate in the industry for the upcoming year.
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