Home Retail Godrej Appliances to invest another Rs 700 crore for capacity expansion

Godrej Appliances to invest another Rs 700 crore for capacity expansion


Godrej Appliances, one of the leading players in the home appliances segment, is all set to invest another Rs 700 crore by 2022. With this investment, the brand is aiming to increase the annual appliance production capacity to 65 lakh units.

Godrej Appliances to invest another Rs 700 crore for capacity expansion

The focus is not only to add capacity but also introduce newer technologies and carry out backward integration. This latest announcement takes the tally of Godrej Appliances’ investment in capacity and technology expansion to Rs 1,100 crore over a period of 6 years.

In line with the prodigious response received for the washing machine category, Godrej Appliances plans to double the current capacity for both fully automatic top load washing machines and semi-automatic washing machines, at its Shirwal and Mohali plant respectively. The brand also plans to introduce a new product line for fully automatic front load washing machines with 4 lakh annual capacity.

For the refrigerator category, the brand further intends to augment the production capacity of both its premium range and mass range by 33 percent.

The investment is also directed towards manufacturing of power efficient chest freezers and a whopping 30 lakh units of compressors utilizing newer technology in the product and processes. Part of the outlay will be for backward integration of Air Conditioners at the Shirwal factory.

The capacity enhancement plan for both the manufacturing units complements Godrej Appliances’ overall business strategy. The brand decided to up the ante as a strategic manoeuvre to amplify the on-going premiumization focus.

Commenting on the investment, Kamal Nandi, Business Head & EVP, Godrej Appliances said, “We have always been at the forefront of innovation and customer delight. Despite the sluggish industry backdrop, we have delivered good growth rate in the past and we will strive to continue on that trajectory. This investment broadens Godrej Appliances’ capability and reflects our commitment to providing customers with exceptional products, while attesting our alignment towards ‘Make in India’. Through this expansion, we aim to take brand Godrej to even greater heights utilizing our strength of manufacturing expertise. The proposed expansion once complete will allow us to meet the increasing demand for premium products from Indian customers better.”

Green manufacturing is one of the core strengths of Godrej Appliances, which not only helps in driving profitability but also helps in building its brand image. Both the manufacturing units – in Shirwal as well as Mohali are considered benchmarks in their respective regions and are Platinum Green Co. rated by CII Green Business Council. Earlier this year, Godrej Mohali plant also received ‘Green Factory Platinum’ certification by Indian Green Building Council (IGBC). Both the factories have implemented TPM to drive operational excellence and have bagged the excellence and consistency awards.