Exports to contribute 10% to Godrej Appliances turnover by 2020

Consumer durables major Godrej Appliances is looking to expand its export portfolio by reaching out to more overseas markets while beefing up its domestic presence.The share of exports to its turnover is expected to reach 10 per cent from a minuscule two per cent now, a top company executive said.

"We are aiming to expand our export market. The share of exports to our turnover would reach four per cent by the end of this financial year from two per cent in 2015-16. By 2020, exports will account for 10 per cent of our turnover. As of now, we are exporting to neighbouring countries like Nepal, Bangladesh and Sri Lanka, Qatar in the Gulf region and African countries like Nigeria. We would like to bring more countries in our export ambit while scaling up volume of exports in the existing markets", said Prasoon Kumar, vice-president (sales), Godrej Appliances.

Godrej Appliances is eyeing turnover of over Rs 4,500 crore in this financial year, up from Rs 3,500 crore in last financial year.

"We are aiming at a growth of 25 per cent compared to the 8-10 per cent growth projected for the consumer durables industry.Growth will come from all categories of our products", Kumar stated.

In the last quarter (January-March period) of FY16, Godrej Appliances clocked a growth higher than the industry average in sales of air conditioners (AC), refrigerators and washing machines.

"Our growth in the room AC segment was 78 per cent in Q4 of last financial year, double the industry average of 39 per cent. In refrigerators and washing machines, we posted growth of 30 per cent and 37 per cent which was again better than the industry standard", he added.

He said, rural consumption was robust last financial year despite widespread drought and the trend is expected to continue in FY17 as well due to good disposable income and higher consumer aspirations.

According to a Euromonitor report, which said: "2015 has been a better year for consumer appliances as both major appliances and small appliances witnessed steady volume growth. An improved economic situation resulted in higher disposable incomes, which further led to higher sales of appliances in the country."

Godrej Appliances is planning to foray into three new categories this financial year besides the planned launch of cassette ACs.

"They will be innovative products in the kitchen space. We intend to launch them towards the end of this calendar year. We have a separate R&D section that comes out with innovative products keeping in sync with consumer preferences", Kumar said.

The company also plans to hike its marketing spend this financial year by 40 per cent to connect better with its consumers. Four per cent of its volume sales comes through internet retailing. Godrej Appliances has a tie up with e-commerce firms like Amazon and Snapdeal for online sales.