Nandi said high Customs duty also contributed to the rise in the input costs of printed circuit boards (PCBs), mainly used in compressors in air conditioners and refrigerators.
However, he said, the future is bright with huge potential as the air conditioner category is growing following higher disposable income and soaring summer temperature.
"Given that we are all working from home and this trend is expected to continue for some time, and therefore, to ensure a very comfortable and productive atmosphere at home and for kids attending online classes there is a need to have air conditioners at home.
"I think that will also fuel demand very fast. Also we are seeing a new trend that is coming up. Given that there is an increasein awareness about health. I think consumers are now looking for more... appliances which are healthy for them and their families," Nandi said.
Asked whether Maharashtra lockdown will affect sales, Nandi said, the state contributes about 10-12 per cent and another 3-4 per comes from Madhya Pradesh, however, the rest 85 per cent of the market is open and the company is seeing higher traction for sure.
The company announced the launch of its range of 100 per cent 'Made in India' eco-friendly air conditioners with the added assurance of health.
Driving its commitment towards 'Make in India', the brand has set up a new AC manufacturing unit at its Shirwal factory in Maharashtra.
Over the last seven years, the brand has invested Rs 1,100 crore in capacity, R&D and technology expansion.
"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 4 lakh units of AC production capacity at Shirwal in 2021. Another 4 lakh 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," the company said in a statement.
Godrej Appliances is also eyeing 10-12 per cent sales in the coming year from e-commerce channels, which is 5 per cent currently, Nandi said.
"e-commerce channel is approximately 5 per cent. But as we progress in terms of development of an exclusive portfolio for the e-commerce channel, we are targeting approximately 10-12 per cent share of buyers from the e-commerce business in the coming year," he added.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
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