“Godrej Appliances is set to enter the segment targeting 15 percent market share in the coming season”
With an ISEER (Indian Seasonal Energy Efficiency Ratio) of 5.2, Godrej Appliances on Monday unveils India’s intelligent and energy efficient 5-star inverter air-conditioner. This premium range of Godrej NXW is touted as India’s greenest inverter air-conditioner with highest power saving entailing green balance technology using R290 -the most energy efficient refrigerant which has 0 ozone depletion potential and lowest global warming potential.
In an exclusive interview with Realty Plus, Kamal Nandi, Business Head and EVP, Godrej Appliances speaks about NXW market share, growth in the segment in near future, and innovation is the key to increase sales with Asma Rafat.
We have seen competition in the air-conditioner market in recent times like never before. Do you see competition for Godrej NXW in the market?
There will be competition in the market and in our industry, we have 37 brands – 19 of which are multinationals but I think what is important to be ahead of the competition curve is to offer something which is the best and very differentiated. So, if you are offering something in every segment, something differentiated and the best the segment could offer to a consumer, you will be gaining your share of competition.
How much market share are you aiming with Godrej NXW air-conditioner?
Currently, in the 5-star segment with fix speed we have about 12 percent market share and with 5-star inverter air-conditioner which is of variable speed, Godrej Appliances is set to enter the segment targeting 15 percent market share in the coming season. Also, inverter AC’s is the fastest growing segment with 75 percent growth every year and 10 percent contribution to industry sales.
What according to you is the revenue generating vertical in the market (residential or commercial)?
Largely, this sort of inventory is focussed on residential but it can also caters to small work stations as there are small offices, there are shops, there are cabins where people can use these products. So, it can be used in the commercial side too. The inverter AC is as efficient at work place as in homes.
So, do you think that could help in boosting the sales…
As tariff prices are going up, a large number of consumers will opt out for more efficient product and that is going to be the trend in coming future. In some of the developed countries, inverter air-conditioners are selling as high as 90 percent but in India we have just 7 percent, I guess this segment is going to grow exponentially.
According to the reports the market size of room air conditioner in India is likely to reach 10 million units by 2020 with a penetration rate of 11 percent as compared to the present size of 3.75 million units of around 3 percent. Do you see growth in the market in the near future?
Today I think the penetration is just 3.75 or we could say, 4 percent and the total industry is about 4 million. This number is going to increase, because this penetration is very low and it is largely in urban areas, and it is going to penetrate more because of two reasons: firstly, temperature is going up, and secondly, pollution levels are going up. Air conditioners provide filtration for even air. Both these factors together are going to increase consumption of air conditioner in urban areas for sure and gradually into TIER-II and TIER-III markets. So yes, I see healthy growth in the near future.
Do you think innovation is the key to success in increasing sales? With all the new innovation coming in the segment, what makes Godrej smart, successful and different in the market?
Innovation like Godrej NXW which is offering consumers a huge benefit will definitely increase sales. You have to deliver what is the need of the consumer and that is very critical. I am not talking about any technology, I am purely giving benefit to the consumer, I am not putting jargons, and it is sheer facts that 5-star inverter AC with 5.2 ISEER is the highest energy efficient inverter AC in the country today.
Is the new version of air conditioner could be termed as a combination of style and performance, please list out few features.
If you look at the type or kind of design that we have brought out with this product, it is very elegantly designed so that we are able to address the need of the lifestyle consumers.
NXW is designed to be the best 5-star inverter AC in the industry with the highest efficiency of 5.2 ISEER, offering 31 percent power savings over a 5-star non-inverter AC. This AC has been designed to suit the Indian climatic conditions and comes with advanced technology and features such as 3X BLDC motor technology, parallel flow condenser with nano-coating technology, moisture resistant conformal coating on PCB, intelligent air throw, et al. The NXW range will be available in two different cooling capacities of 5000 W and 3440 W and are priced between the range of INR 45,000 and INR 55,000. Godrej Appliances is also offering a 10-year compressor warranty and a 5-year condenser warranty.
Customers make a product success and are the ones who take it to another level. What do you have to say to your loyal customers or a piece of suggestion?
As an organisation, Godrej is always in the process of evolving new technology which justifies our customers trust in us and underlines our commitment to the environment. The NXW range of AC’s, designed in keeping with Godrej Appliances culture of driving innovation sustainably is the most energy efficient and the greenest range of inverter air conditioners available in the country today.
I would urge all our consumers that you must execute your responsibility towards the environment and therefore, adopt products which are greener, efficient, and thereby help the next generation to have a better world.