Following a sharp growth in its refrigerator and washing machine sales, coupled with its growing services business, the appliance division of Godrej & Boyce Mfg Co Ltd is expected to break even during the current financial year, top company officials told Business Standard.
According to Soumitra K Ghatak, executive vice-president (marketing, sales and services), Godrej & Boyce Mfg Co Ltd (appliance division), the company’s refrigerator sales have grown at a compounded annual growth rate (CAGR) of 19 per cent during 2001-03, while the industry has grown at a CAGR of three per cent.
“As a result, our marketshare has grown from 15 per cent to 23 per cent. We are the second-largest player in the market for refrigerators after Whirlpool,” he said.
In washing machines, the division’s annual sales have improved from 45,000 to 100,000 during 2002-03, raising its marketshare from four per cent to eight per cent during the period.
“During the same period, we have increased the number of our outlets from 5,500 to 9,500,” Ghatak added.
The division’s services business, which is carried out under the Godrej Smartcare brand, has already notched a turnover of Rs 50 crore.
Meanwhile, the division is preparing to make a splash in the air conditioner market soon.
To begin with, it will do a soft-launch of its new range of A-Cs in December this year in certain coastal markets. A nationwide launch will be done when the next season begins in March/ April next year.
In addition, Ghatak said that he is also looking at the possibility of entering the market for microwave ovens by sourcing these products from China.
The company recently entered the Sri Lankan market by launching products under its own brand.
Ghatak said that this will be followed by a similar foray into other neighbouring overseas markets such as Bangladesh, Indonesia and the Philippines.
“We have already been supplying our products to companies in these markets, which sell these under their own brand. We now want to export to these countries under our own brand,” he added.
Commenting on the impact of good monsoon on sales, Ghatak said that it would positively affect sales not only in the coming months but also the next year.
>From Business Standard