In a first-of-its kind initiative, a bilateral agreement between India and Germany has led to a product launch in the home appliances segment. Godrej Appliances has launched Godrej EON Green Balance, range of five star air conditioners, which is an outcome of a bilateral treaty between both the countries.
“Green Balance is an initiative by the environment ministry in India and its counter part working through German Agency of International Cooporation. The agreement was signed after the Montreal protocol. This model exceeds 5 star range energy saving rating specified by the Bureau of Energy Efficiency (BEE) this year but is also above the ratings specified for 2016 standards. It was the ministry which selected us for this and the overall investment for this was about Rs 50 crore,” said George Menezes, chief operating officer of Godrej Appliances. The firm is looking to sell about 50,000 units in the first year.
The company said with the introduction of the new brand it expects a 3 per cent rise in sales. “The overall residential air conditioner market is of 25 lakh units, out of which we own a share of about 7 per cent. With this, we would like to increase it to 10 per cent mark,” said Kamal Nandi, vice president-sales and marketing of the firm.
Meanwhile, Godrej is expecting a marginal growth in business in the first half of 2012-13. “This is going to pick up during the second half, in the festive season,” Nandi said. During the last year, product prices have zoomed about 8 to 20 per cent across various categories. “Refrigerator prices have gone up by 7-8 per cent, while that of air conditioners have increased by 15-20 per cent in 2011-12, compared to the previous financial year. The recent rise in excise duty of about 2 per cent has also contributed to the price hike,” he added.