Thursday, 15 April 2021

Godrej Appliances Undertakes Strategic Expansion With in-House Backward Integrated AC Manufacturing Plant

By 121 News

Chandigarh April 15, 2021:- In line with its brand philosophy of 'Soch Ke Banaya Hai' and the brand value of Environment, Godrej Appliances, a business of Godrej & Boyce, the flagship company of the Godrej Group and one of the leading players in the Home Appliances industry, launched its range of 100% Made in India eco-friendly air conditioners with the added assurance of health. The new air conditioners come with a special 'Nano-Coated Anti-Viral Filtration Technology' which eliminates 99.9% viral and bacterial particles coming in contact with the Nano Coated Filter surface, safeguarding consumer health and improve the hygiene at home. Driving its commitment towards 'Make in India', the brand has set up a new AC manufacturing unit at its Shirwal factory. The entire new range spanning 30 models, uses only the most eco-friendly refrigerants – R290 and R32, thus offering the lowest Global Warming Potential (GWP).

The ongoing Covid pandemic has influenced purchase behaviour across categories with consumers seeking better health, hygiene and comfort at home where they are spending a lot more time. People are warming up to more sustainable, eco-friendly offerings. The other significant shift has been greater consciousness towards supporting India-Made Products.  For the economy too, the pandemic has highlighted the importance of securing supply chains and being self-reliant. This is in line with the government's vision of AtmaNirbhar Bharat which necessitates indigenous manufacturing, developing a pool of skilled labour and an ecosystem of component manufacturing in the country.

Manufacturing is one of the core strengths of Godrej Appliances. Via backward integrations, the brand has been working steadily over the years towards upping its indigenous manufacturing capabilities, with an intention to manufacture nearly all its product categories locally. Over the last seven years, the brand has invested Rs. 1100 crore in capacity, R&D and technology expansion, demonstrating attesting its commitment to 'Make in India'. The brand recently inaugurated its new Air Conditioner manufacturing unit at its Shirwal factory in Maharashtra, in the presence of Ms. Nyrika Holkar, Executive Director – Godrej & Boyce and Mr. Kamal Nandi – Business Head and Executive Vice President – Godrej Appliances

The new AC line in Shirwal is spread across 1.50 lakh sqft. The brand has invested INR 50 Crores in capital, dedicated to machinery, tools infrastructure and backward integration for the air conditioner category including AC heat exchanger coils & Indoor Units. This will add 4 lakh units of AC production capacity at Shirwal in 2021. Another 4 lakh units of AC production capacity will be added in Mohali by 2025 with an additional similar investment, taking the total investment to Rs. 100 Cr. The backward integrated manufacturing unit will equip the brand with greater agility and flexibility in terms of its offerings – both features and aesthetics, enabling it to respond faster to changing consumer needs.

Commenting on the new assembly line, Kamal Nandi, Business Head and Executive Vice President – Godrej Appliances, said that we take pride in our manufacturing capabilities. Both of our manufacturing plants at Shirwal and Mohali are the first in India to be coveted with CII's GreenCo Platinum Plus rating, for our sustainable and green manufacturing practices. We have been working towards improving our indigenous manufacturing capabilities through backward integrations, moving a step closer to being able to manufacture most of our product categories in-house. The newly set up air conditioner manufacturing unit is yet another concrete step in bringing alive our founder's vision of a self-reliant India, while taking care of the environment. A capital of INR 100 Cr is earmarked for the venture of ~100% in-house manufacturing of eco-friendly ACs in Shirwal and Mohali by 2025, augmenting production capacity to 8 lakh units. The new ACs supplement heavy duty cooling with 99.9%+ virus sterilization thanks to Anti-Viral Nano filtration technology, in view of the need for greater hygiene at homes.

The nano-coated anti-viral filter has a special chemical coating that eliminates 99.9%+ viral and bacterial particles coming in its contact. The filter continues to retain its efficacy even after 50 washes, during routine maintenance, ensuring that it protects you throughout the life of the air conditioner.

The machines come with a 10-year inverter compressor warranty for added peace of mind. To further enhance its offering during the season, Godrej is providing limited period offers like subsidized installation offers along with the convenience of Same Day Installation at key cities and attractive finance offers on the entire range along with extended warranty benefits.

Santosh Salian, Product Group Head – Air Conditioners, Godrej Appliances, added that summers are becoming harsher every year and temperatures are already soaring in April this year. Last summer was a washout for the AC category industry wide, but we are upbeat about this summer season and expect that there will be good demand for ACs, partly influenced by the continued work and schooling from home trend also. We also offer a very strong 2 Tr Split AC portfolio, which is being positioned as a 'living room AC'. Godrej Air Conditioners are known for heavy duty, energy efficient, and environment friendly cooling. We have retained all this but with the pandemic influencing people's need for increased hygiene and health, our new ACs are also equipped with 99.9%+ viral and bacterial sterilisation. The wide range of eco-friendly products will be available across all channels and leading stores. With this 100% Made in India and Greenest AC range, we are confident of strengthening our position by growing our market share to 10% over the next 3 years.

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