Godrej hopes that the festive season in addition with consumer goods offers and revision of the seventh pay commission will boost the firm’s sales
Following the recent decision to reduce the Goods and Service Tax (GST) in several electronic appliances, consumer durables firm Godrej Appliances announced on Friday that it has cut down prices of washing machines, refrigerators, microwave ovens and chest freezers by 7-8 per cent.
Targeting the upcoming festive season
The Mumbai-based Indian electronics giant said in a release that the company aims at “providing an increased impetus to the upcoming festive sales,” following the reduction of GST on these items from 28 per cent slab to 18 per cent. The company expects that the reduced prices with the addition of the upcoming festive season that will come with consumer offers will provide a growth to their sales of 12 to 15 per cent more than previous year. Godrej also hopes good monsoon and revision of the seventh pay commission to contribute to its good sales report.
Kamal Nandi, Godrej Appliances business head and executive vice-president, said, “The revision (in GST) will make refrigerators, washing machines, microwave ovens and chest freezers more affordable, which will accelerate the penetration of these appliances.”
Godrej hopes air conditioners will still be in 18 per cent GST slab too
Of the 35 white goods that remain in the higher 28 per cent GST category is air conditioners. Nandi said that he expects the energy efficient variants (AC) will also be considered to be included in the 18 per cent tax bracket soon.
He added, “Going forward, we are hopeful of revision in the tax for air conditioners, boosting its penetration which is currently a mere 3.6 per cent.”
Another consumer electronics giant, Samsung also announced on Friday that it will be reducing prices of fridges, television sets and washing machines by approximately 8 per cent.