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Rina Chandran

MUMBAI, May 27

TECHNOLOGY and a mindset change - that is what Godrej is banking on for growth in washing machines, a category that has not grown as quickly as other household durables have. Specifically, a sophisticated four-way wash action and a greater consumer inclination toward washing machines, encouraged by falling prices, will help Godrej achieve an aggressive double-digit volume growth this year, according to Mr S.K. Ghatak, Executive Vice-President, Marketing, Sales and Services, Godrej Appliances.

"In the hierarchy of purchases, a washing machine is generally low, as there are substitutes — unlike refrigerators — and there is a feeling that it is a big indulgence," he said.

"Besides, we're all first-generation users, so knowledge is required, and a mindset change is also required." The size of the market in 2002 was estimated at 11.3 lakh units, and projected growth is 6 per cent, as compared to 25 per cent for air conditioners. Fully-automatic washing machines only make up 20 per cent of the market, but are expected to register a 7 per cent growth rate, primarily due to falling prices.

Godrej had a 6.5 per cent share of the market last year, and expects to grow that into a "double digit figure" this year, he said. It has a share of about 9 per cent of the semi-automatic segment, and 3 per cent of the fully-automatic segment.

Currently, in the semi-automatic segment, the bulk of volumes comes from the 6 kg (Pulsator) model, followed by the 4-5 kg (Pulsator) and 5-7 kg (Agitator) models.

In addition to these products, Godrej also plans to expand the number of dealers from the existing 3,500 to 5,000, and boost its retail presence from 8,000 to 9,500 outlets this year.

The company will also spend Rs 8-10 crore on advertising this year, which features brand endorser Preity Zinta. The North and the West continue to be the biggest markets, accounting for 50-60 per cent of the market for washing machines, primarily because there are more urban centres here.

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