“Source:- IBEF”
Godrej Appliances will invest Rs 700 crore (US$ 100.16 million) by 2022, in order to increase its annual appliance production capacity by 19 lakh units to 65 lakh units per annum. This investment takes the tally of Godrej Appliances’ investment in capacity and technology expansion to Rs 1100 crore (US$ 157.39 million) over a period of six years.
The plan is not to just increase capacity but to also add new technologies and carry out backward integration, according to the company.
“This investment broadens Godrej Appliances’ capability and reflects our commitment to providing customers with exceptional products, while attesting our alignment towards ‘Make in India’. Through this expansion, we aim to take brand Godrej to even greater heights utilizing our strength of manufacturing expertise. The proposed expansion once complete will allow us to meet the increasing demand for premium products from Indian customers better,” said Mr. Kamal Nandi, Business Head & EVP, Godrej Appliances.
The company intends to increase the presently available capacity for both fully automatic top load washing machines and semi-automatic washing machines, at its Shirwal and Mohali plant respectively. A new product line will be introduced for fully automatic front load washing machines with 4 lakh annual capacity.
The brand plans to expand the production capacity for its refrigerator category of both premium range and mass range by 33 per cent.
This investment is focused towards manufacturing of power efficient chest freezers and 30 lakh units of compressors utilizing newer technology in the product and processes. Some part of the investment will be used for backward integration of air conditioners at the Shirwal factory.
This capacity enhancement plan for both its manufacturing units is also in line with Godrej Appliances’ ongoing premiumisation focus, it said.