NEW DELHI: Consumer durables major Godrej Appliances is targeting a turnover of Rs 5,500 crore in 2022-23, a 35% growth as compared to the pre-pandemic year 2019-20. Kamal Nandi, business head and executive vice-president at Godrej Appliances, part of Godrej & Boyce, in interaction with TNIE said that the company has witnessed 52% growth in volume and nearly 70% growth in value in comparison to the same period last year.
“We estimate the second half of the year to be better than the first half as we are projecting inflation to be controlled and commodities to soften. We anticipate that the mass segment consumers who are postponing purchases now will come forward during the festive season and expect improvement in discretionary spending,” Nandi said. Inflation has affected consumer sentiment in the mass segments even as premium segments are buoyant, according to Nandi.
The premium mix in the total contribution is expected to double this year, compared to pre-pandemic years, he notes. “The premium growth is being seen across town classes. Catering to this demand from tier 3 and 4 cities, we have opened more than 135 exclusive brand stores – the Godrej Inspire Hubs, which have been seeing close to a third of their sales coming from premium segments.”
Festive sales usually comprise around 28 – 30% of the annual sales for the company. This year in Q2 FY 22-23 during Onam festivities, Nandi says, they are targeting over 30% growth over last year as well as pre-pandemic growth. He, however, adds the festive target setting for larger countries will depend on how the monsoons fare overall and the consumer sentiment over the next month or so.