GODREJ & Boyce, a key player in the home appliances industry in India, will be investing Rs 100 crore to expand their refrigerator and air conditioners manufacturing facilities at Mohali and Baddi.
"We will invest Rs 50 crore each in both Mohali and Baddi facilities to augment the existing capacities of both the frost-free refrigerator and the air-conditioners,'' Godrej & Boyce chief operating officer George Menezes told reporters here on Wednesday.
The company has the capacity of 5 lakh direct cool refrigerators annually and the new facility, to be operational this year, will take its annual capacity to about 7.5 lakh units, he said, adding that the company hoped to double its domestic
market share from 20% to 25% by the year end.
The company has now two manufacturing facilities at Mohali and Pune, and has a combined direct-cool and frostfree refrigerator capacity of ten lakh units. Expansion in the Pune facility is also being undertaken, which will increase its capacity by 2.5 lakh units. While the frost free market grew by 26% in 2006-07, the direct cool grew by 5%, according to company data. With added focus to the Punjab market, the refrigerator summer sales of Chandigarh branch are up by 34% over last summer.
"Currently the direct-cool market accounts to 72%, whereas the frost-free market is 28%. We expect growth to come from both the refrigerator and Air conditioner market and hence are pumping the money,'' Mr Menezes said. This summer, Godrej air conditioners have grown by 90% in volume terms and 120% in value terms (Jan-Jun '07) in Punjab over the last summer (Jan-Jun '06).
The Baddi unit assembly line currently manufactures 3 lakh units of airconditioners annually.
Kamal Nandi, vice-president, sales & marketing said, "To support our expansion plan, we are further strengthening our sales and service network to reach out to customers all over the state and north markets."