Godrej Appliances is eyeing Rs 4,000 crore turnover in the current fiscal, a growth of over 20 per cent year-on-year, in the hope that good monsoons across the country and salary hikes following the implementation of 7th Pay Commission recommendations will boost demand.
“This year we are expecting a topline of Rs 4,000 crore. We ended last year at around Rs 3,250 crore. With a good monsoon and 7th Pay Commission, I am sure the discretionary spend and the disposable income in the hands of the consumer will be much higher,” Godrej Appliances Business Head and Executive Vice President Kamal Nandi told PTI.
The company is also expecting a 15-18 per cent growth in sales during the current festival season.
“Festive demand will be better this year than last year. Last year, we experienced festive demand of 7-8 per cent and this year we are expecting it to be anywhere between 15-18 per cent. That is the kind of growth we are expecting, double of last year,” he was quoted by PTI as saying.
The company, which spends 5 per cent of its turnover on marketing, enjoys a market share of 14 per cent in the overall Rs 13,500 crore refrigerator industry, 10 per cent share in the estimated Rs 5,100 crore washing machine industry.
It has 6 per cent market share each in ACs and microwaves. The AC industry is estimated to be at Rs 10,500 crore, while the microwave market size is estimated to be Rs 900 crore.
The Mumbai-headquartered Godrej Group is into real estate, consumer products, industrial engineering, appliances, furniture, security and agricultural products. It claims to have about 750 million people users of its products in India and about 1.1 billion people globally.
Godrej Group For More Acquisitions
The Godrej Group is focusing on the inorganic growth route and feels it is a good time to go for more acquisitions, Chairman Adi Godrej said last month.
“We are putting lot of emphasis on inorganic growth route. We acquired few businesses last year in agro and consumer segments. Our growth through inorganic route will be good over the next few years,” said Godrej.
“Inorganic growth would be made mainly through acquisitions. Globally things are not doing well; you can acquire businesses at lower cost than normal,” he told reporters in Kolkata.
The group was looking to acquire businesses mainly in the developing world — Asia, Africa and South America — and at acquisition in the consumer product segment, mainly in personal and household products, he said.