Godrej Appliances to open exclusive stores
Godrej Appliances, consumer durables division of Godrej Group, plans to open its exclusive outlets.
"We want to get into exclusive brand outlets (EBOs). There is a school of thought that in years to come, exclusive stores will start getting a foothold. Our competitors such as LG and Samsung also have exclusive outlets," said Godrej & Boyce Manufacturing Company's Chief Operating Officer (Godrej Appliances), George Menezes.
At present, the company sells its products through retail channels and multi-brand outlets (MBOs).
"We will be getting into franchisee model...opening 25 stores in FY13, but will be cautious on this model," he said.
The company is eyeing a growth of over 20 per cent, aiming at a revenue of Rs 2,100 crore for FY13, and expects a turnover of Rs 1,700 crore for FY12.
It is also ramping up its manufacturing capacity by nearly 50 percent at its two plants to meet the demand for refrigerators, Menezes said.
Currently, the firm has two plants for home appliances: Mohali (Punjab) and Shirwal (near Pune). It plans to set up
another in the south in the next four years.
"Refrigerator continues to be the biggest area for us followed by air conditioners, washing machines and microwave. However, bottom of the pyramid is a new space we are working on," said Menezes.
Godrej currently enjoys a market share of 13 per cent in the refrigerators. The market is estimated at 10 million units per year, growing at 10-12 percent.
In washing machines, the company plans to increase the market-share from 9 percent to 15 percent in two years. It also wants to increase the share in the estimated 3-million unit AC market to over 10 percent from the current 9 percent.
Besides, the company plans to launch a plethora of products in the bottom of the pyramid segment. "Right now we are building the ecosystem to move the BOP products....we thought instead of limiting ourselves to Chotukool why not create a bouquet of products for BOP segment," Menezes said.