With the refrigerator market set to witness a turnaround in its growth in the current year, consumer durables major Godrej is eyeing a 20 per cent increase in its sales this year.
"We are targeting sales of three lakh units this year, as opposed to about 2.5 lakh units last year. The refrigerator market should see high growth this year, helped particularly by the good monsoons. Also, the penetration of refrigerators is still quite low," Mr Soumitro K. Ghatak, Executive Vice-President (Marketing), Appliances Division, Godrej & Boyce Co. Ltd, said.
The company at present has a market share of 20.5 per cent in the refrigerator market and hopes to increase it by 2 per cent this year.
Incidentally, in view of the increasing prices of key inputs such as steel and plastic, Godrej has undertaken a minor price revision across its project. "We have increased prices by up to 2 per cent particularly in our economy sub-brands such as Champion and Superstar. With the prices of steel having increased by about 40 per cent, there is an immense pressure on margins," said Mr Ghatak.
Incidentally, Godrej has three sub-brands in its portfolio to address the economy end of the market, namely Champion (the entry level range), Superstar and Cold Gold.
"About 65 per cent of the refrigerator sales in the industry come from the economy price range," explains Mr Ghatak.
The company has already launched its new models for the summer and has rolled out advertising for the same featuring brand ambassador Preity Zinta. It has earmarked an ad budget of about Rs 15 crore for the next ten weeks.
Meanwhile, Godrej had also made a recent entry to the air-conditioners market and is targeting to sell about 30,000 units this year.