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Godrej Enterprises Eyes 50% AC Sales Growth in FY26

Written by: Nikitha DeviUpdated on: Mar 26, 2025, 12:07 PM IST
Godrej Enterprises targets 50% AC sales growth in FY26, driven by smart ACs, commercial expansion, and strong demand, aiming to outpace industry growth.
Godrej Enterprises Eyes 50% AC Sales Growth in FY26
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Godrej Enterprises Group anticipates a significant 50% growth in air conditioner (AC) sales in the next fiscal year, driven by strong consumer demand and the launch of an expanded product portfolio. 

Kamal Nandi, Business Head & Executive Vice President, Appliances Business, expressed confidence in achieving this ambitious target, citing the increasing demand for premium and smart ACs.

The company expects the overall industry demand for air conditioners to remain robust, growing by approximately 30-35% in FY26. Although this is lower than the 60% industry growth witnessed last year due to a higher base, Godrej Enterprises is optimistic about outperforming market trends.

Expanding Product Portfolio with Smart and Commercial ACs

To meet the growing demand for technologically advanced cooling solutions, Godrej has expanded its AC portfolio, introducing a premium range of smart ACs. These new models come equipped with AI-powered technology, Internet of Things (IoT) connectivity, and WiFi-enabled controls, catering to the evolving needs of modern consumers.

Additionally, the company has entered the commercial AC segment with Cassette ACs and Tower ACs, offering powerful cooling solutions for commercial spaces. This strategic move allows Godrej to diversify its offerings and strengthen its presence in the broader air conditioning market.

By enhancing its portfolio with high-efficiency models, including 5-star ACs and units with high cooling capacities of 3 and 4 tons, the company aims to capture a larger market share. The latest smart ACs are priced from ₹42,900 and will be available across India through authorised stores and e-commerce platforms.

Market Outlook and Future Growth Plans

Godrej Enterprises has demonstrated remarkable growth in the AC segment. The company is set to close FY25 with a 10% market share, having doubled its sales volume from 6.7 lakh to 14 lakh units. This growth rate far surpasses the estimated industry growth of 36% for the current fiscal year.

Looking ahead, Godrej is targeting another 50% growth in FY26, supported by its new product launches and aggressive marketing campaigns. The overall AC industry is expected to expand from 14 million units in FY25 to 18 million units in FY26, providing ample growth opportunities.

The company has also taken proactive steps to prepare for high summer demand, ensuring adequate supply to avoid shortages like those experienced last year. With rising temperatures across India already increasing AC consumption in February, the outlook for the summer season remains strong.

Conclusion

With a strong product portfolio, cutting-edge technology, and strategic expansion into commercial ACs, Godrej Enterprises is poised for substantial growth in the coming years. By focusing on innovation and premium offerings, the company aims to strengthen its market position and cater to evolving consumer preferences in the rapidly growing AC industry.

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Published on: Mar 26, 2025, 12:07 PM IST

Nikitha Devi

Nikitha is a content creator with 6+ years of experience in the financial domain. Specialising in personal finance, investments, and market insights, Nikitha simplifies complex financial topics, making them accessible to readers.

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