Godrej Appliances lowers growth target to 15% from 25% for FY16

Consumer appliances firm Godrej Appliances has lowered its growth sales target for the current fiscal from 25% to 15% at Rs 3,200 crore due to poor summer season sales.

The company, which opened its first exclusive brand outlet (EBOs) in Delhi, plans to open up to 300 EBOs in 3 years.

"We have reduced our sales growth target to 15% this year from 25% set at the start of the fiscal due to poor summer sales. Cooling product account of 80% of our total sales. We are targeting turnover of Rs 3,200 crore this year as against Rs 3,500 crore set earlier," Godrej Appliances Business Head and Executive Vice President Kamal Nandi said.

Also read: Godrej consumer appliances eyes 20% growth in FY16

Nandi said that the company is opening exclusive brand outlets to increase its brand visibility and to cash in on the growing aspiration of customers in smaller towns.

"We plan to open 250-300 EBOs in three years time. Our focus while opening EBOs is more on tier II and tier III cities. These exclusive brands will give us good visibility and we have seen good sales happening through these stores," he added.

Also read: Godrej Appliances to invest Rs 35 crore into medical refrigerators

Nandi did not share investment the company would make in opening these outlets.

Apart from EBOs, the company also sells its product through over 26,000 outlets across the country.

In order to prepare for the next year, the company has planned product launches in its major product segments such as washing machines, refrigerators and air conditioners.