The Telegraph
Monday , February 25 , 2013
Since 1st March, 1999
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Godrej devices to save power

Calcutta, Feb. 24: Godrej Appliances — the flagship division of the $3.3-billion Godrej & Boyce Manufacturing Co. Ltd — expects to end this fiscal with revenues of Rs 2,500 crore.

The company, which has been registering a compounded annual growth of 22 per cent, plans to increase it over the next three years by focusing on the development of energy-efficient products.

It has entered into a technological collaboration with Bosch and Siemens Home Appliances Group to develop frost-free refrigerators for India, Asia Pacific, West Asia and Africa. The products will be launched in 2014.

Godrej will earmark 5 per cent of its revenues each year for research and development till 2016.

The company, which ranks third with an 18 per cent market share in the overall refrigerator category, targets to clinch the No. 2 spot within three years. It enjoys a 21 per cent share in direct cool refrigerators and a 15 per cent share in the frost-free segment.

“The big strategy we are working on is to collaborate and develop energy-efficient products. We are also partnering institutions, design firms and technology houses to bring alive innovation. The basic idea is to remain ahead of the curve in the market with the Indian government tightening energy norms every two years and develop products and features based on user-centric research. The objective is to bridge the gap with competitors,” said Kamal Nandi, executive vice-president, Godrej Appliances.

The company will use Bosch’s technical know-how for the products, which will be manufactured at the Shirwal facility near Pune. The plant has the capacity to manufacture 1.5 million units of refrigerators and 1 million units of washing machines. Godrej also has a refrigerator manufacturing plant at Mohali with a capacity of 2 million units.

Godrej will maintain status quo on prices till the budget. “This industry operates on wafer thin margins. There has been pressure on commodities and rupee depreciation. We are not going for price increase now. We will wait for the budget and see its impact on costs. Then we will take a call,” he said.