Racing To The Top

Targeting 50 per cent growth in AC sales and a 13 per cent market share this year, Godrej looks to be in pole position this summer

-  By Arjun Yadav

NOT long ago, refrigerators used to be the biggest contributor to sales for consumer durables manufacturers. Generally, they used to be the first appliance for new consumers in their homes.

But in the last 3-4 years, the trend seems to have changed, with room air conditioners taking over refrigerators in the purchase priority of consumers. This trend is also visible in Godrej Enterprises Group's Godrej & Boyce's financial numbers, now a billion-dollar company by revenue. ACs make up 50 per cent of this number.

The year gone by can be termed exceptional for Godrej as the AC business registered 100 per cent growth, arguably making it one of the fastest-growing players in the segment. The momentum is set to continue this year as well because the company projects a 50 per cent growth for this season as well, at a time when others are pegging their growth between 25-30 per cent.

The growth registered last year in the AC business led the company to improve its market share in this segment from 6.5 per cent last fiscal to 10 per cent this fiscal.

Riding on the potential and the growth forecast for the year ahead, Godrej now eyes closing the next year with nearly 13 per cent of the market share. This could potentially make it among the top three players in the Indian market but it will be in a tight contest for that spot with Blue Star.