Panaji, Apr 20 (UNI) Electronics and appliances manufacturer Godrej has set a target of achieving 35-40 per cent growth, taking its revenue to Rs 5500 crore, during the current financial year.
In an exclusive interview to UNI, Kamal Nandi, Business Head and Executive Vice President – Godrej Appliances, after achieving the target, the company would aim at growing 15-20 per cent annually.
‘This year we are targeting 35-40 per cent growth, taking our revenue beyond INR 5500 Crore, and after continue to grow at 15-20%,’ he said.
He said the company enjoys varying market share across categories with over 15 per cent in refrigerator category, over ten per cent in washing machines, five per cent in air conditioners, six per cent in microwave ovens while eight to nine per cent in deep freezer category.
Speaking about impact of Covid on the segement of business and performance during the last financial year, Mr Nandi said, ‘The pandemic is putting a lot of pressure on consumer durables industry. Consumer durables industry is likely to degrow by 12-15 per cent in 2020-21, compared to the previous financial year, owing to a loss in the first quarter. And the worst hit has been the air conditioner segment, which is expected to de-grow somewhere around 30-35 percent. The reason behind is because of the first quarter loss, which contributes to about 35-40 percent, which could not be recovered.’
‘Sharp rise in commodity prices, import restrictions, freight issues, delays in port clearances further added to supply issues. The custom duty revision for the compressors, used in refrigeration and air conditioning, was also increased from 12.5 per cent to 15 per cent to promote indigenous manufacturing in line with making India self-reliant. There has been an increase in import duties on motors and PCBs as well. These policies are welcome from a long run perspective, but will have an adverse impact in short term. Having said that, the future is bright with huge potential for appliances especially for cooling categories and is growing as a result of the higher disposable income, continued work or study from home and soaring summer temperatures,’ he said.
When asked what were the plans to cover the losses, Mr Nandi said,’Despite the fact that varying levels of lockdown and restrictions are being implemented in multiple states, 85 per cent of the potential market is still operational. Consumers are feeling uncertain and anxious about the possibility of more severe lockdowns and need appliances to be better prepared for the same. Since last year, health and hygiene features have had a draw since last year and consequently features like anti-viral filtration, germ disinfection in ACs, washing machines, etc., have been getting traction. The trend is expected to continue this year. Last year, we introduced UVC based disinfection device ViroShield as well as disinfecting washing machines and ACs, after rigorous tests and validations, to provide consumers with an extra degree of protection in their homes. We will continue with our efforts to bring thoughtfully designed appliances to meet our consumers’ current and latent needs.’
On any plan to provide relief to consumers who are facing job losses, he said,’Consumers are becoming more concerned about the risk of more serious lockdowns. Given the current scenario, we understand consumers’ value savings as well as financial flexibility. This is why we provide year-round selection of thoughtfully crafted offers, ranging from long term lucrative finance offers to cash backs and extended warranties, exchange and discounts on AMC. We hope consumers will make use of these options and make the right purchase for themselves so their homestay is made more comfortable & safe and they are better prepared for future.’
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