Hyderabad: The consumer appliances company, Godrej & Boyce Manufacturing Company Ltd, is planning a foray into the Rs2,000-crore Indian commercial refrigeration and cold storage market, piggy-riding on the explosive growth in the retail sector, said its Chief Operating Officer, George Menezes.
“We have recently commissioned a consumer research to evaluate the opportunities in this evolving business sector and may firm up our detailed business plans shortly,” he said. He was addressing the media on the occasion of launching a new range of washing machines on Friday at Hyderabad.
Stating that the current opportunity size is estimated roughly at around Rs 2,000 crore and expected to grow at a faster pace, Menezes said the sector is buoyed by the fast growing retail sector in the country. ”We are looking opportunities for stand alone commercial refrigeration and cold storage units in large-format retail stores, big malls and super markets.”
The company, which has recently invested Rs 100 crore to ramp up its refrigeration facilities at Mohali and Pune to add 5-lakh units capacity, estimates another Rs 100 crore of fresh investment to take up production of commercial refrigeration and cold storage units, Menezes told Mint.
”At present, there are no big organized players into the Indian commercial refrigeration and cold storage business. We expect to garner a major market share using our strong brand, modern manufacturing facilities and extensive sales network,” he said.
Nitin A. Khandkar, Senior Vice President with the Mumbai-based Keynote Capitals Ltd, said: “Godrej & Boyce has a long track record and brand equity in consumer refrigerators, which can be extended to the commercial refrigeration segment too. Given the increasing share of organised sector retail and the impending entry of global retail companies in India, the size of the opportunity is indeed very large. ”
Given the fact that there are no big organized players into the domestic commercial refrigeration and cold storage business, Godrej & Boyce can well enjoy the first mover advantage in the segment, which can help it consol
Having unveiled a new range of washing machines with dynamic aqua-power control (DAC) technology, the company expects to improve its market share in domestic washing machines to 12% from the existing 8% in the next six months. Hoping to sell at least 50,000 units of washing machines of DAC technology, the company has projected a sales of 2.5 lakh units of washing machines this year as compared to 1.5 lakh units sold in last fiscal.
“The appliances division of Godrej & Boyce is now growing at around 45%, much higher than the industry average, and expect to post a revenue of Rs 1,400 crore this fiscal as against Rs 1,000 reported in the last fiscal year,” said the Godrej & Boyce President and Executive Director, P.D. Lam.
At present, refrigerators account for nearly 70% of the company’s revenue, followed by 10% by air conditioners, 10% by washing machines, 5% by DVD players and 5% by microwaves.
Attributing the low penetration of automatic washing machines in the Indian market primarily to the problems in power and water supplies, Lam said the company’s new range of DAC technology washing machines would address the issue and enable higher penetration.