Godrej Appliances is targeting a turnover of Rs 5,500 crore in 2022-23 and around 35 per cent of the sales will be contributed from its premium range of products, a top company official said.
Besides, Godrej Appliances is also investing Rs 200 crore in the capacity expansion of its premium range and adding more products, which will be largely done at its Shirwal, Pune-based plant, the company's Business Head & Executive Vice-President Kamal Nandi said.
The company has a "very good response" from the market for its premium portfolio product range, in which it has invested Rs 250 crore so far, Nandi told PTI.
"Our efforts of the last two years to bring out premium portfolio across categories have started paying off now very well," he said, adding, "I think the premium portfolio that we have done so... is going to get larger in this year as more new products in the segment are going to be launched. We are targeting another Rs 200 crore to be invested in this portfolio and capacity expansion."
It is expanding its portfolio of premium products across categories like frost-free refrigerators, fully automatic washing machines, air conditioners, air coolers and freezers.
Godrej Appliances, a business unit of Godrej & Boyce, the flagship company of the Godrej Group, aims for a turnover of around Rs 5,500 crore, which is even 35 per cent higher than the pre-pandemic number of Rs 4,500 crore, Nandi added.
"We were about Rs 2,000 crore in 2021-22, which was a pandemic time. This year we are targeting a turnover of Rs 5,500 crore," he said.
In the pre-pandemic year, Godrej Appliances' premium products were in the vicinity of 18-20 per cent, Nandi said, adding, "This share will move up to 32-35 per cent this year."
Earlier, the demand for premium products was from the developed metro and tier-II cities but now the situation has changed and like other makers, the Godrej group firm is also getting a pie from the aspirational customers from the smaller tier III and below cities.
To cater for this demand, Godrej Appliances has opened more than 135 exclusive brand stores in smaller Tier II, III and IV markets, which are selling more than 30 per cent of its premium products, Nandi said.
"We know that there are customers, who try for premium categories and premium products, but they do not have accessibility and availability and as a result of that, we have opened up a few brands outlets only in tier II, III & IV places and that has been our focus," he added.
When asked about the expansion of the sales network, Nandi said Godrej Appliances products are currently sold through about 27,000 outlets and the company has plans to add another 5,000 outlets by the end of this year.
"This 5,000 outlets will come in both urban and rural markets," he said adding "We are expanding our portfolio of frost-free (refrigerator) and premium portfolio, which should also bring in some network expansion happening in urban and in rural because of expansion of air cooler, chest freezers and air conditioner".
Copyright©2023 Living Media India Limited. For reprint rights: Syndications Today