 "Godrej Appliances")
The company is also betting big on artificial intelligence (AI) to improve customer experience. Image: Twitter
Godrej Appliances, a part of Godrej & Boyce, is expecting its revenue to grow by over 67 per cent to reach Rs 10,000 crore by financial year 2025-26 (FY26), mainly driven by innovative products and increasing demand for air conditioners, refrigerators, and washing machines, a top company executive told Business Standard.
During the last financial year (FY24), the company reported its revenue at around Rs 6,000 crore. This is expected to cross Rs 8,500 crore in financial year 2024-25 (FY25) and Rs 10,000 crore in 2025-26, said Kamal Nandi, Business Head and Executive Vice-President of Godrej Appliances.
The company has set a roadmap to enter the top three in terms of market share in key categories like air conditioners, refrigerators, and washing machines.
“In air conditioners, from last year’s position at number nine, we have moved to number five. By next year, our target is to be in the top three. Currently, we are number four in refrigerators and expect to be in the top three by next year. In washing machines, we have just launched front-load products and are at number six now. In the next three years, we will mark our presence in the top three,” Nandi added.
According to the company, its refrigerator business is growing at a healthy rate of 40 per cent. “The chest freezer market is a little low this year, but it is expected to pick up by next year. We will be able to drive this growth because of the portfolio we launched recently,” he added.
The company is also betting big on artificial intelligence to improve customer experience. In September, it opened a new unit at Shirwal near Pune, further expanding its manufacturing capabilities. This production facility focuses on automatic front-load washing machines powered by AI technology. The company has reportedly made a strategic investment of close to Rs 100 crore in capital expenditure dedicated to machinery, tools, infrastructure, and backward integration.
“This season we have launched AI-powered appliances. All the premium products in refrigerators, air conditioners, and washing machines are AI-powered. The response has been very good. We grew by 46 per cent in September because of this. These are the things that are driving our growth,” Nandi said.
“Even today, consumers are tech-savvy. They expect more and more AI-powered technology to be incorporated into appliances,” he added. The company is not planning any immediate investments in expansion, as over the last seven years it invested around Rs 1,500 crore in factories and will be rolling out products from these investments over the next three years.
“There will be continuous investment in products and technology year after year, which will be around Rs 200 crore annually,” he said.
First Published: Oct 07 2024 | 11:58 AM IST
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