Consumer appliances company Godrej Appliances will be opening 50 exclusive brand outlets (EBO) in the country this year and another 150 such stores in the next three years.
Consumer appliances company Godrej Appliances on Tuesday said it will be opening 50 exclusive brand outlets (EBO) in the country this year and another 150 such stores in the next three years.
"We have build our premium range of products which will be showcased in these showrooms. These EBOs will be based on the franchisee model and will be opened at tier II and III cities primarily," the company's business head and executive vice president Kamal Nandi told media persons.
These EBOs, according to Nandi, will help boost sales of premium products in upcountry as well as metro locations. The company has classified goods valued above Rs.15,000 as premium products. Apart from these stores, the firm will also increase its presence in multi-brand outlets from the existing 25,000 pan-India to 28,000 in the ongoing fiscal year.
With these moves in place, the firm has targeted to increase its revenue by just over 18 percent at Rs.3,250 crore in the ongoing financial year in comparison to the 2013-14 period when its revenue stood at Rs.2,750 crore."During April-June, this year, the earnings stood at Rs. 1,100 crore," the official said.
Asked over the company's allotted capital expenditure (capex) during 2015-16, Nandi said,"We have allotted five percent of our topline on capex. Off this allotment, the majority will be spent on product development." A majority of the company's last year's capex was spent on ramping up its infrastructure. It also has plans to step up the capacity in its Mohali plant in Punjab to produce an additional eight lakh compressors and an additional six lakh units of washing machine every year.
"With these, we'll be producing three million compressors and one million washing machines from the Mohali plant.