Chennai, Dec 19 - The consumer appliances sector is expected to return to log around 15-18% growth rates once the reduced 18% Goods and Services Tax (GST) rate comes into effect, said a senior official of Godrej Appliances here on December 19.
"The government has reduced the GST to 18% from 28%. When the new rates would come into effect is not known. Once the new rate comes into effect the industry is expected return to back to log 15-18% growth rate," its Business Head and Executive Vice President Kamal Nandi told reporters here.
Nandi was here to launch Godrej Edge Duo a single door refrigerator with a separate vegetable drawer at the bottom. He said that the innovation - a separate drawer to store vegetable like the drawer in old wooden cupboards - will save power for the user as the fridge door is kept open longer time to take out vegetables.
According to Nandi, the industry growth rate has come down to single digit this year till October this year owing to factors like GST, intervals between festivals and subdued sales during the festivals.
He said sales in November and December are showing good growth for Godrej Appliances.
Godrej Appliances is expected to close this fiscal with a turnover of around Rs.4,000 crore up from Rs 3,300 crore posted last fiscal, Nandi said.
Queried about smart appliances, he said the company would soon come out with an announcement.
Nandi said the company's new plant in Maharashtra being set up at an outlay of Rs 200 crore is expected to go on stream in 2019.
On the distribution side, Godrej Appliances will be expanding its exclusive brand outlets in tier II, III and IV cities to 200 outlets by 2020 from the current 70 numbers.