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Godrej Appliances Sales: Godrej Appliances expects 20% growth in gross sales in FY24, says official

Godrej Appliances, part of the diversified firm Godrej & Boyce Mfg Co, expects a 20 per cent increase in gross sales at around Rs 6,200 crore in FY24, according to a top company official. The company is expecting contribution from its premium products of up to 40 per cent from 35 per cent at present, Godrej Appliances Business Head and Executive Vice President Kamal Nandi said.

“The gross sales of Godrej Appliances is expected to be around Rs 5,200 crore in FY23 and with a close 20 per cent growth, we would be around Rs 6,200 crore,” Nandi told PTI.

The company, which on Thursday unveiled a new range of residential air conditioners, expects a two-fold growth from this vertical to Rs 1,200 crore.

“We are expecting a severe summer and may be an elongated one and as result, demand for the cooling category will be high,” he said, adding, this will not be high from last year but also better than pre-Covid years.

Last year, the demand tapered down due to intermittent rains and the inflationary trend also forced the companies to go for the revised price hikes, he added.

“Sentiments are much better between last year and this year. We can also expect more discretionary spending this year as people will have more money in their hands with tax reliefs,” he said.

About inflation, Nandi said it has tempered down and has come to a manageable level. “Going forward, we do not see prices moving up beyond 3-5 per cent, given that China opens up… The industry would be able to manage it and not adversely impact the demand,” he said.

On probable supply disruptions in China, which is a major supplier of components to the Indian industry, and the high ocean freight charges, Nandi said in the AC segment, lots of localisation has happened now such as PCBs (Printed Circuit Boards) being locally assembled and backward integration of several components being increased.

Godrej Appliances operates in categories such as ACs, refrigerators, washing machines and some other small home appliances. It also operates in categories such as chest freezers, and medical refrigerators, among others.

Presently, AC contributes around 15 per cent of the overall gross sales of Godrej Appliances and is expected to rise to around 22 per cent, Nandi said.

Currently, Godrej Appliances, which has manufacturing units at Shirwal, near Pune and Mohali, has an installed capacity to roll out 3.5 million units of refrigerators, 1 million units of washing machine, 0.6 million units of AC and 0.2 million chest freezers.

It has also launched India’s first leak-proof split air conditioner with anti-leak technology and has filed a patent for the same.

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