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Godrej Appliances will look to push the share of premium offerings in its portfolio. Nearly 25 per cent (or one-fourth) of its sales will go premium over the next three years.
Premium offerings make up for 15 per cent of the company’s business mix, while the remaining 85 per cent consist of mass and mid-premium ranged ones.
Nearly 55 per cent of the ₹3,300-crore FY-17 revenues came from refrigerators, while air-conditioners and washing machines account for 20 per cent and 16 per cent of its turnover. The remaining comes from service spares and microwaves.
According to Kamal Nandi, Business Head and EVP, the company is already investing in a new ₹200 crore unit at Pune expecting increased demand for its premium offerings.
The facility is likely to come on-stream from end-2019 or early-2020. The upcoming Pune facility will cater to refrigerators (between 400 litres and 600 litres), chess freezers for B2C and B2B segments, washing machines and medical refrigerators.
“Three years back, we decided to get into the premium segment. And the strategy has worked in our favour. We are now investing in a new plant anticipating higher demand,” he told reporters on the sidelines of the launch of its new single-door refrigerator.
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