Godrej to pump in Rs 100 cr for new refrigerator plant

Godrej to pump in Rs 100 cr for new refrigerator plant

Author | Source: The Economic Times | Friday, Jul 21,2006 7:16 AM

Godrej to pump in Rs 100 cr for new refrigerator plant

Godrej Appliances is setting up a new manufacturing unit for refrigerators. The appliances unit, which is the largest division of Godrej & Boyce (G&B), will set up its third manufacturing facility for refrigerators at Shirval.

The new unit would come up with an investment of about Rs 100 crore and would be operational within one year. The new facility would come alongside the existing unit at Shirval. Godrej had shifted its entire manufacturing operations of appliances from Vikhroli in Mumbai to two different units - Mohali near Chandigarh and Shirval.

The two existing units cumulatively have a capacity of 10 lakh refrigerators and the new unit would bring in an additional capacity of 5 lakh units of refrigerators to the company, which will increase the overall capacity by 50%.

George Menezes, chief operating officer, G&B (appliances division), said: “Given the growth projections that we have set for the appliances division the current manufacturing capacity would not be sufficient to meet the demand so we are going for the expansion.

We are also looking to bring a number of innovative products both in terms of design and technology in the coming months.” In the current year, G&B is targeting high growth of 35-40% for the appliances wing, which will in effect push Godrej Appliance into the Rs 1,000-crore club.

Last fiscal the appliance division closed the year with a turnover of about Rs 750 crore. Meanwhile, Godrej Appliance has gone through some organisational changes recently, wherein it merged the sales and marketing functions under Kamal Nandi.

Earlier, Mr Nandi was the sales head, while Shyam Motwani was heading the marketing and exports function. Now, Mr Motwani has moved on to head the retail division of G&B. At the same time, Mr Menezes was appointed as the new COO for the division.

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