Godrej Appliances targets Rs 2000 cr turnover

Betting big on a range of new products including front loading washing machines, DVD players and televisions, Godrej Appliances is targeting a turnover of Rs 2000 crore for 2008-09 as against Rs 1400 crore in the current financial year.

Kamal Nandi, vice president, sales & marketing, appliances division, said, "We hope to touch Rs 2000 crore in 2000-09 at a growth rate of 45 per cent as against 30 per cent last year." Godrej Appliances is a division of the Rs 4,000-crore Godrej & Boyce Manufacturing Company.

The company plans to introduce front loading washing machines under its Eon range by June next year, ahead of the monsoon season. It will also unveil a television range and the pilot will be launched early next year. The television business would help in boosting the DVD sales as well.

The company is also aiming to introduce one new product in each quarter of the next financial year. The new products would cater to the seasonal needs of the consumers.

"We have witnessed better realisations because of the newly launched products. We are already 5 per cent up on realisation compared with the last year and the trend will hopefully continue with the launch of new products next year," said Nandi.

The growth for Godrej Appliances this year was fuelled by microwaves, refrigerators and washing machines. "Our Eon Refrigerators took the market by storm with their never-before features and technology. And our DAC technology washing machines launched this year had a very good response. The microwave category is also a fast growing category for us," Nandi said.

Godrej also plans to expand its premium range of appliances, Eon, to DVD offering to be introduced in 2008. "We see great potential in the DVD market and have a market share of 5 per cent this year as against 3 per cent last year," Nandi added. The company has refrigerators, air conditioners and steam microwave under its EON brand.

The company experienced a growth of 46 per cent in the festive season from September to November this year. "We are now focussing on the south since the Christmas and New Year season is good for purchases in the south," Nandi added.

Nandi dismissed the possibility of price erosion in their products "Copper and steel costs have been going up and hence chances of price erosion are less. The white goods space should see a rise in prices here on," Nandi added.

Godrej Appliances will focus on extensive brand promotion, with an emphasis on below-the-line activities. It plans to spend about five per cent of its turnover on advertising and another five per cent on R&D.