Home appliances maker Godrej Appliances is going to venture into small kitchen appliances space

Home grown home appliances maker Godrej Appliances is going to venture into small kitchen appliances space banking on the creation of a new channel of stores selling such products over the next one year.
The company’s business head Kamal Nandi said kitchen appliances products will be sold under the Godrej brand itself. The company has just ventured into air coolers and is now going to create a new channel of stores which sell air coolers and kitchen appliances.

“This new channel will help us in our kitchen appliances foray. However, it is still some time away and we expect the launch around 2021-22,” Nandi said.

Godrej Appliances is hoping to clock Rs 4500 crore sales in the current fiscal ending March as against Rs 4000 crore it had clocked in 2018-19. For 2020-21, the company’s sales target is Rs 5300-5400 crore.

The company on Thursday forayed into air coolers with inverter technology which is used in air-conditioners. It claims with this new technology, consumers can save up to 50% more on their power bills.

“A lot of consumers have downgraded to air coolers from air conditioners with the starting price of air conditioners shooting up by Rs 5,000 in last few years due to tightening of energy norms. The air cooler category has potential to grow at 20% plus,” said Nandi.

Nandi said the unorganised air-cooler market is now getting converted into the organised trade like in AC. He estimated that the organised air-cooler market is around Rs 3,000 crore while the unorganised one is about Rs 3,500 crore.

“The penetration of air coolers is at 19-20%. It may be a highly cluttered category with lot of AC brands entering into it, but the potential is huge,” he said.