As inflation eases, Whirlpool, Godrej look to enter ACs, ovens segment

KOLKATA: With volume growth back in white goods after three years, durable makers Whirlpool, Godrej Appliances, Voltas and Kenstar are in expansion mode, planning entry into newer categories to become multi-product makers.
Whirlpool wants to re-enter categories such as multiple-door refrigerator, front-loading washing machines and air-conditioners while Godrej Appliances is charting a plan to become bigger in air-conditioners, aiming for one of the top three slots.

While Kenstar has just entered the air-conditioner segment, Voltas wants to expand into associated categories like air-coolers.

The expansion comes after durable industry sales volume has grown by more than 15% so far this fiscal year across categories, compared with the previous three years when sales were flat or have shrunk.

Shantanu Dasgupta, Whirlpool India vice president for corporate affairs and strategy, said improved macro-economic factors and easing of inflation have brought growth back in the past three quarters, encouraging it to get back into expansion.

“We have been pretty strong in entry-level products like direct-cool refrigerator and semi-automatic washing machines, but we cannot live like this forever,” said Dasgupta. “It is time we plug the gaps.”

Whirlpool, much like the other durable makers, was on a go-slow mode since the slowdown in 2011 to protect profit and focus on core categories.

For Whirlpool, single-door refrigerators and washing machines contribute 90% to sales. Its target is to have more revenue streams.