New Delhi: Godrej & Boyce Manufacturing plans to achieve its sales target of up to Rs 2,800 crore by the end of this fiscal and would go for capacity expansion after two years.
"We targeted 35 percent growth and are on course. Last year, we ended at about Rs 2,000 crore and this year we are expected to go around Rs 2,700-2,800 crore," Godrej Appliances Business Head and Executive Vice President Kamal Nandi told PTI.
The company, which is aiming to be among the top three Indian consumer durables makers in next five years, is growing at almost 100 percent in air-conditioner segment and in excess of 25 percent in other categories such as refrigerators, he said.
"In washing machine, we are also doing well and growing about 33 percent. We have launched some new products in the segment. Our fully automatic model Glitz is well accepted by consumers. In washing machine, launches are doing very well," Nandi added.
However, he said that frost-free segment has not done well due to price increase as a result of increasing energy efficiency norms, following which the company had to go for price hike in January this year.
Taking the government's "Make in India" initiative forward, Godrej Appliances would increase share of localised production for its appliances.
"We are encouraged by "Make in India" movement and are hopeful that the government is... Make more in this country and therefor we would try to increase it more and more," he said.
Presently, the company manufactures around 70 percent of its products in India. Some products such as refrigerators are fully built here, however, appliances such as washing machines are built between 50-60 percent here and in case of air-conditioners, it is 50 percent.
Godrej Appliances, which has two manufacturing units at Pune and Mohali, is considering capacity enhancement after two years.
"We had done capacity enhancement two years back and right now what capacity we have is sufficient to support demand. As we move forward and sustain the growth then we would definitely have to invest more," he said.
On being asked about when that time would come, Nandi said: "In the next two years time, there would be manufacturing investment which we have to do. We would also wait for GST."
The company would focus on the domestic market rather than on export as India has a very low penetration and has more opportunities to explore, Nandi added.
