As India braces for longer, hotter summers and smarter homes, Godrej Appliances is doubling down on innovation in the cooling segment. From AI-powered washing machines and air conditioners to a five-year comprehensive warranty aimed at building consumer trust, the company is chasing growth with a clear focus on value and differentiation. In a conversation with Kamal Nandi, Business Head & EVP at Appliances Business of Godrej Enterprises Group, we explored what's driving this momentum, how evolving regulations are shaping product roadmaps, and why offline retail still dominates the brand's sales. Below are edited excerpts from the interview.
Indian consumers are becoming more conscious about energy consumption and smart home integration, and your new range seems to be tailor-made for that segment. Can you share more thoughts on the current lineup?
We did the aesthetic integration last year, and this year, our focus has been on smart integration. AI-powered machines have already been launched across the range—we've introduced AI washing machines, AI-powered ACs, and now the smart AC is being launched. The idea is to truly enhance the consumer experience and empower them to live a modern lifestyle. There are specific needs within that lifestyle, which we aim to address through these features. Going forward, more products in this segment will be introduced across categories—not just in ACs, but also in refrigerators and washing machines.
Q: Godrej grew 100% last year in the AC segment, and it plans to grow another 50% this year. What are the factors driving this growth?
We are bringing in differentiated products—both in terms of technology and aesthetics—and have been offering strong value for money to consumers. For instance, the five-year comprehensive warranty is a significant value-add. I believe this has helped increase consumer preference for our brand, which in turn is driving our volumes and market share. There's a strong sense of trust in our brand. If you're able to offer consumers the choices they're looking for, you can gain market share. Right now, we're focused on providing options across segments to meet varied consumer needs.
Q: AC is also a very competitive market, and many other companies are competing in the price segment. So, what differentiates a Godrej product from the others in the market?
As I mentioned, we are offering our consumers differentiated value, features, technology, and aesthetics.
Q: Is Godrej looking to make a mark in the mid-level segment or the premium segment?
We are present in both and are trying to ensure that we get our rightful share across segments.
Q: There’s also a growing demand for ACs from tier two and tier three cities. Do you have any specific plans to ramp up the distribution or specific marketing strategies to cater to this segment and this growing demand?
We have been expanding our network rapidly. Last year, we added 5,500 outlets, and next year, we plan to add about 5,000 outlets. Our brand offers a very wide portfolio, which allows us to drive consumer preference towards it. As a result, we are also seeing more and more outlets come forward to work with us.
Q: Traditionally, a large share of sales came from the northern region, but that seems to be shifting rapidly. At the same time, online channels are playing a much bigger role in driving demand. How do you see the market evolving in light of these changes?
About 85% of our sales still come from the offline market. I believe rising temperatures due to global climate change are driving AC demand globally, making it one of the fastest-growing categories worldwide. Naturally, this raises serious concerns around energy consumption. Yes, air conditioners do consume a lot of energy—and the biggest challenge now is how we meet that growing energy demand.
Q: Godrej has long positioned itself as a sustainability-focused brand, and you’ve just touched on energy consumption as a key concern. At the same time, we’re seeing the government tighten regulations to promote energy efficiency. How do you see these evolving regulations influencing the future roadmap of products—particularly in the cooling segment?
I believe there will be a strong push towards more energy-efficient products. We’re already seeing this trend take shape, and it's necessary—otherwise, we won't be able to meet the rising energy demands. Currently, AC penetration in India is only around 10%, and we’re already facing power challenges in several areas. If this penetration rises to 40%, 50%, or even 90%, like in Japan, it could become a major concern.
That's why the government will continue to push the industry, and the industry itself is actively working on more energy-efficient technologies. We are constantly innovating. Back in 2018–19, the Rocky Mountain Institute in the US, along with India's Ministry of Power, issued a challenge to develop an air conditioner that consumes 80% less energy. Around 122 countries participated, with nearly 1,900 entries—and we were among them. In fact, we were one of the top three finalists globally for the Global Cooling Prize. Now, the focus is on commercializing that solution. I believe more such innovations will emerge in the coming years.
