After a back-to-back washout summer, Godrej Appliances launched a wide range of air conditioners as they anticipate summer demand to return to pre-pandemic levels. Launching 21 new models of air conditioners, the company anticipates air conditioners to become the leading category for the coming summer season.
Inflation, however, will continue to be a hurdle, dampening consumer demand. Kamal Nandi, Business Head and Executive Vice President – Godrej Appliances, part of Godrej & Boyce, told BusinessLine, that the company might consider taking additional price hikes come April, after having already taken price hikes in January 2022.
The AC product category, which makes for 20-25 per cent of Godrej’s sales, encountered a major washout during the summers of 2020 and 2021, during the first and second wave of the Covid-19 pandemic. With the waning third wave, as well as higher vaccination rates, the company anticipates that sales of air conditioners during peak summer months of April and May will return to pre pandemic days, where Godrej expects to double its sales of air conditioners in comparison to last year.
Premium range
Thus Godrej Appliances, has launched its premium range of air conditioners with advanced cooling, air purification technology, IoT controls, differentiated aesthetics and more. “These air conditioners provide smart controls to increasingly tech savvy consumers, along with comfort and safety through IoT, UVCool technology, nano coated anti-viral filtration, lower derating and more,” according to the press note.
The new portfolio of products will focus on newer trends of the consumers established as a result of the pandemic including health, hygiene and comfort, with features such as UVCool technology and nano coated anti-viral filters.
While things are back to normal on the supply side as the immediate impact of the pandemic wane, the threat of inflation could continue to dampen consumer demand. Commodity prices for appliances have increased by around 26 per cent so far, and Godrej has covered 15-16 per cent of this uptick through price hikes.
Further price hike
Nandi said however that the company might consider taking additional price increases in April, “One round of price increases have already happened in January, so I don’t see any price increases happening in February and March. Another round of price increase might take place in April depending on how we see commodity prices moving up. We are already seeing some signs of commodity hardening because of the Russia-Ukraine crisis; if that continuesdtit will compel us to go for another round of price hikes. It depends entirely on how the industry is going to behave.”