Godrej Appliances expects its sales to grow by 30 per cent in the upcoming festive season on the back of the 7th pay panel award fueling demand as it eyes a total sales of Rs 3,750 crore in 2016-17.
According to a PTI report: The group has reasons to believe so. It is expecting higher contribution from semi-urban and rural areas this year on the basis of good monsoon, besides portfolio expansion of its premium brand, NXW.
Last year, it had clocked sales of around Rs 3,000 crore. “This year, we are targeting around Rs 3,750 crore. The increase would largely come from value and volume both,” Business Head and Executive Vice-President, Godrej Appliances, Kamal Nandi was quoted by PTI as saying.
The company, which has launched AC and refrigerator under brand NXW, will soon roll out washing machines under its premium segment.
“Now, NXW is contributing around 10 per cent of the total sales and we are increasing portfolio in that. Its ratio would go up in coming times,” he was further quoted by PTI as saying.
Godrej Appliances’ 65 per cent revenue comes from urban areas and the rest from semi-urban and rural.
“Last year, urban had a higher growth rate, but this year with good monsoon, we expect a faster growth rate coming from semi-urban and rural areas,” Nandi was quoted by PTI as saying.
Implementation of the 7th Pay Commission recommendations by the government, the company feels, is going to come as a top-up.
“Festive numbers account for around 26 per cent of the total sales of the company and we are targeting 30 per cent growth from this year’s festive season,” he was further quoted by PTI as saying.
According to him, average festive sales growth for the industry last year was about 8-10 per cent and this year, it would be 15-20 per cent.
“Consumption of consumer products should go up. With higher affordability, definitely, you would see upgrading to better technology and premium, better-designed and efficient products,” he was quoted by PTI as saying.
Besides, Godrej Appliances is looking to increase the number of its exclusive brand outlets (EBOs).