Godrej Appliances expands manufacturing facility, launches made-in-India ACs

Godrej Appliances factory in Shirwal, Maharashtra

Godrej Appliances factory in Shirwal, Maharashtra

Godrej Appliances, a business of Godrej & Boyce, on April 15 launched its range of made-in-India air conditioners (AC). The firm is investing Rs 100 crore in both manufacturing units at Shirwal and Mohali by 2025, to augment their AC production capacity to 8 lakh units.

The company claimed in a statement that the new air conditioners come with a special ‘Nano-Coated Anti-Viral Filtration Technology’ which is said to eliminate 99.9 percent viral and bacterial particles coming in contact with the Nano- Coated Filter surface.

Godrej Appliances also said that it has set up a new AC manufacturing unit at its Shirwal factory. The entire new range spanning 30 models, uses eco-friendly refrigerants – R290 and R32, thus offering the lowest Global Warming Potential (GWP).

Kamal Nandi, Business Head and Executive Vice President – Godrej Appliances, told Moneycontrol that the brand has invested Rs 50 crore in capital, dedicated to machinery, tools infrastructure and backward integration for the air conditioner category including AC heat exchanger coils and indoor units.

“This will add 400,000 units of AC production capacity at Shirwal in 2021. Another 400,000 units of AC production capacity will be added in Mohali by 2025 with an additional similar investment, taking the total investment to Rs 100 crore,” he added.

While the government has approved the production-linked incentive (PLI) scheme for multiple sectors including white goods (ACs and LEDs), Nandi explained that the company is studying the scheme and will take a decision based on the long-term benefits.

While their market share in AC category is around 5 percent, the brand is targeting a share of 10 percent over the next three years in ACs.

Over the last seven years, the brand has invested Rs 1,100 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.

“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,” he added.