- The company is also eyeing opening of 200 single brand retail stores in Tier IV cities in India
- Godrej’s production capacity to increase by 19 lakh units taking it up to 65 lakh units annually after the investment
Godrej Appliances’ latest announcement takes the tally of its investment in capacity and technology expansion to Rs 1,100 crore over a period of six years. The company said that the move is in line with the response it has received for the washing machine category.
“This investment broadens Godrej Appliances’ capability and reflects our commitment to providing customers with exceptional products, while attesting our alignment towards ‘Make in India’. Through this expansion, we aim to take brand Godrej to even greater heights utilising our strength of manufacturing expertise. The proposed expansion once complete will allow us to meet the increasing demand for premium products from Indian customers better,” informed Kamal Nandi, EVP and business head, Godrej Appliances.
Doubling the capacity of producing washing machines
The company, through this investment, plans to double the current capacity for both fully-automatic top load washing machines and semi-automatic washing machines, at its Shirwal and Mohali plants, respectively. Godrej Appliances also plans to introduce a new product line for fully-automatic front load washing machines with four lakh annual capacity.
For the Refrigerator category, the brand further intends to augment the production capacity of both its premium range and mass range, by 33 per cent. The investment is also directed towards manufacturing of power efficient chest freezers and 30 lakh units of compressors utilising newer technology in the product and processes.
“Part of the outlay will be for backward integration of air conditioners at the Shirwal factory. The capacity enhancement plan for both the manufacturing units complements Godrej Appliances’ overall business strategy. The brand decided to up the ante as a strategic manoeuvre to amplify the on-going premiumisation focus,” read Godrej’s official statement.
“We have always been at the forefront of innovation and customer delight. Despite the sluggish industry backdrop, we have delivered good growth rate in the past and we will strive to continue on that trajectory,” added Kamal Nandi.