Godrej Appliances is looking at air-conditioners, DVD players and microwave-ovens as potential growth drivers for the company.
As part of the company's strategy to introduce new products every quarter, the company today announced the launch of Godrej Microsteam, a steam microwave.
Kamal Nandi, vice-president of sales and marketing, Godrej Appliances, said, "Microwave ovens have one of the lowest penetration amongst the durables. But it is one of the fastest growing categories with a CAGR of about 70 per cent. The changing lifestyle has led the consumers to opt for health conscious and oil free food."
Available in a single size, Godrej Microsteam boasts of cooking steam dishes faster while retaining the moisture and extracting fat from the food products.
George Menezes, COO, Godrej Appliances, said ,"Along with air conditioners and DVD players, microwaves are one of the potential growth drivers for the company. Currently, we have a 5 per cent market share in the segment and we intend to double the market share to 10 per cent."
With the introductory price of Rs 14,990, Godrej Microsteam is targeted at the upwardly mobile and health conscious people. Godrej plans a pan India launch in a phased manner.
In the first phase, the company is targeting cities like Mumbai, Chennai and Cochin while the second phase would comprise other metros and mini metros.
Speaking about the marketing and promotional plan, Kamal Nandi stated that the broader promotional plan was in the planning stages but the initial phase would focus on city based launches. Currently the microwave segment is registering 65 per cent growth with the sale of 7.5 lakh units.
The segment is expected to sell 10 lakh units by the financial year 2007-08. This year Godrej Appliances is expected to reach a turnover of Rs 1000 crore and the company plans to double the turnover every 3 years.