The Godrej Group sets target for its consumer durable’s division Godrej Appliances nearly 5000 crores, 25 percent up in 2018-19. The group expected higher demand from tier 1 to tier 4 cities.
The air conditioner (AC) segment of Godrej aims to increase its overall market share to 8 per cent from 5 per cent at present. The size of the AC market estimated to be 55 lakh units growing at a compounded rate of 20 per cent. However the penetration levels of AC is merely around 3.6-3.7 per cent in the country, according to industry estimates.
The Air conditioners segment currently contribute close to 20 per cent of the Godrej revenues.
“We should be close to Rs 4000 crore this financial year. We will be targeting a 25 per cent growth next year, at close to about Rs 5000 crore,” Kamal Nandi, Godrej Appliances business head and executive vice president said.
He also added consumption of premium products in tier I to tier IV cities is the highest. The consumption of metro cities is around 12 per cent while rural area is 35 percent.