Godrej Appliances on Monday said it will invest Rs 700 crore to increase its annual appliance production capacity by 19 lakh units by 2022, taking it up to 65 lakh units per annum.
The appliances maker also plans to introduce newer technologies and carry out backward integration. "Godrej Appliances is all set to invest another Rs 700 crore by 2022. This latest announcement takes the tally of Godrej Appliances' investment in capacity and technology expansion to Rs 1,100 Crore over a period of six years," the Godrej & Boyce Manufacturing Co. unit said.
The fresh investment is aimed at raising the company's annual appliance production capacity by 19 lakh units by 2022, increasing it up to 65 lakh units per annum, it added. With this investment, Godrej Appliances plans to double the current capacity for washing machines - both fully automatic top load and semi-automatic - at its Shirwal and Mohali plants.
"The brand also plans to introduce a new product line for fully automatic front load washing machines with annual capacity of 4 lakh units," it added. In the refrigerator category, Godrej Appliances intends to augment the production capacity by 33 percent in both premium range and mass range.
"The investment is also directed towards manufacturing of power-efficient chest freezers and 30 lakh units of compressors utilising newer technology in the product and processes. Part of the outlay will be for backward integration of air conditioners at the Shirwal factory," it added. Godrej Appliances has also decided to up the ante to amplify the on-going premiumisation focus.
The company's Business Head and Executive Vice President Kamal Nandi said, "This investment broadens Godrej Appliances' capability and reflects its commitment to providing customers with exceptional products, while attesting our alignment towards Make in India'.
"The proposed expansion, once complete, will allow us to meet the increasing demand for premium products from Indian customers better.
Godrej Appliances, a business unit of Godrej & Boyce Manufacturing Co. Ltd, is present in the segment such as air conditioners, washing machines, refrigerators, microwave ovens and air purifiers. It has a network of 23,000 dealer and retailer outlets, and is present across India through over 100 exclusive brand outlets.
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