Godrej & Boyce is planning to expand its business in the consumer durable space with a full-fledged entry into the consumer electronics market. The appliance division of the company has been traditionally selling refrigerators and lately air-conditioners, washing machines, microwave ovens and DVD players.
It is now also looking to enter the colour television segment.
The company is looking at various business models to enter the market, including product sourcing tie-ups. Speaking after the launch of new range of air-conditioners, Kamal Nandi, vice president (sales) at the appliance division of Godrej & Boyce, said, “Margins in consumer electronics are better than appliances as that market has not been affected to the same extent as appliances due to the cost increase of raw materials such as copper and steel.”
Shyam Motwani, vice president (marketing & exports) at the appliance division of Godrej & Boyce, said, “We are looking at various options to enter the electronics market, while also strengthening the product portfolio for white goods. The overall brand communication would also sport a new look when we get into the consumer electronics business.”
The idea behind the move is to generate higher revenues in the company while leveraging the distribution presence and brand equity of Godrej.