Following an exceptional 100% growth in air conditioner (AC) sales last year, Godrej Appliances, part of the Godrej Enterprises Group, anticipates a robust 50% year-on-year demand increase this summer season.
Speaking to FE, Kamal Nandi, business head and EVP at Godrej Appliances, said, “We are now a billion-dollar company, with ACs contributing nearly 48-49% of our total revenue,” he said.
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Nandi also projected a significant market share increase. “We closed FY24 with a 6.5% market share, and we expect to end FY25 at around 10%. By FY26, we aim to reach 12-13%, positioning us among the top three players in the market,” he noted.
To strengthen its foothold, the company launched nine new smart ACs on Tuesday, expanding its product portfolio to 67 models. It has also entered the commercial AC segment with new tower and cassette models. Priced from Rs 42,900, these smart ACs come with AI-powered technology, IoT connectivity, WiFi-enabled controls, and high cooling capacities of up to 3-4 tons, along with new designer models. These will be available across authorised retail stores and e-commerce platforms nationwide.
Speaking on industry trends, Nandi noted last year’s extraordinary demand surge of 66%, but he expects a more moderate 35% industry-wide growth this year due to the high base. This would translate to total AC sales of approximately 14 million units in FY25, rising to an estimated 18 million units in FY26.
Despite strong demand, the industry faces supply chain challenges, particularly in the availability of compressors and copper tubes. These issues stem from stringent quality control norms and import restrictions from China. To counter this, the government introduced a production-linked incentive (PLI) scheme in FY21 to promote domestic manufacturing.
“Before the PLI scheme, India imported about 75% of its AC components. This has now reduced to roughly 35%,” Nandi explained. He acknowledged the ongoing shortfall but expressed confidence that by FY27, the country would achieve self-sufficiency in compressor production.
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Godrej Appliances operates two manufacturing facilities in Mohali and Pune and is actively working on expanding its capacity. “We are well-prepared for next year, but we are already strategising our next expansion phase,” Nandi stated.
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