Godrej Appliances Targets 20% Sales Growth In Fiscal 2025

Godrej Appliances anticipates its premium segment to increase sales turnover by as much as 20% in the upcoming fiscal year.

The premium segment will continue to drive further growth amid high disposable incomes, easy access to financing for homes, and more first-time buyers directly entering the premium segment and not the mass segment, according to Kamal Nandi, business head and executive vice president of the appliance maker.

Although the mass segment will drive volumes, Nandi, who was speaking at the launch of the company's Eon Vogue range of refrigerators and air conditioners on Tuesday, expects its revenue growth to remain weak.

"I think, given the challenge of inflation, we don’t see much growth coming from that (mass) segment," he told NDTV Profit. "Growth in the next fiscal will again be driven by the premium segment."

The company expects demand for air conditioners to remain high. "AC is the biggest driver where we have grown at about 100%," he said. "There, the share has doubled over last year, and we’re the number five player now."

Godrej Appliances is likely to close the current fiscal with an 18–19% year-on-year growth in turnover and is on track to achieve its target of Rs 6,000 crore. On increasing market share, Nandi said: "Industry growth is about 8–9% and we are doubling it."

The executive said the company would not change product prices until June, as inflationary trends and the Red Sea turmoil, which have diverted global shipping routes, have not influenced input and supplier costs so far.

"We're evaluating this, and we should be taking a call on any price changes after summer. Till June, we are not touching prices," he said. “Because all the input material that we had to buy has already been bought."

On rising competition amid companies like Acer foraying into the home appliances space, Nandi said there is scope for growth as penetration in the appliances segment remains "too low."

Godrej Appliances’ Eon Vogue edition offers refrigerators and air conditioners with a wooden finish. "Coupled with other premium launches, the brand aims to up its premium segment contribution from 45% to 55% and boost summer growth to 20% with a robust portfolio."

The company said the range will soon be available across India in authorised stores, e-commerce platforms and the website of India Circus, a home decor firm.