The company is also expecting 30 per cent growth in sales during the current festival season.
The commissioning of the plants will start in the middle of the second quarter of the next financial year.
In an interview to CNBC-TV18's Priya Sheth, Adi Godrej, Chairman of the Godrej Group spoke about his outlook and impact of GST rollout for the company and Indian economy.
As Indian family-owned firms grow in size, their need for external investors and talent will rise in tandem, leading to diverse ownerships and professional managements, says Adi Godrej
"Godrej Properties Ltd has entered into a development management agreement with Shivam Realty to develop a residential group housing project off the Akurli cross road at Hanuman Nagar, Kandivali East, Mumbai," the company said in a statement.
Godrej Appliances, the consumer durables division of Godrej Group, is aiming to capture 20 percent market share across the 5-star and inverter AC segments by 2018 on the back of new launches.
Godrej Interio, the furniture arm of Godrej Group, is looking to double its mattress segment turnover up to Rs 400 crore in the next three years.
Godrej Group's FMCG unit Godrej Consumer Products has left demonetisation behind in and expects a better show in the fourth quarter ending March 2017. Adi Godrej, Chairman, Godrej Group, said consumption has picked up and FMCG business is doing good.
Media reports suggest that Warburg Pincus is likely to pick up a 40% stake in Tata Technologies (an engineering solutions and IT product developing arm of Tata Motors).
Going ahead, remonetisation will spur the company‘s earnings in the fourth quarter ending March 2017, Godrej Group Chairman Adi Godrej said, adding that GST rollout will fuel the company‘s and India's growth in FY18.
Adi Godrej, who will turn 75 in April, will continue as chairman emeritus at Godrej Properties, which earlier in the day reported a twofold jump in net profit at Rs 77.25 crore, the company said in a statement.
Adi Godrej, Chairman, Godrej Group, feels that cutting individual and corporate taxes is quintesential to stimulating the economy after the demonetisation led to consumption plummeting in the economy.
The Godrej group firm is expecting almost a flat growth in the third quarter (October-December), although the uptown sales have revived in December.
Godrej Group may look to list Godrej Agrovet after assessing the impact of several factors such as demonetisation, Uttar Pradesh state elections and implementation of Goods and Services Tax, according to Chairman Adi Godrej.
Sales impacted due to demonetisation will normalise by the end of this quarter, says Adi Godrej, Chairman of Godrej Group. No de-growth is expected in Q3 or Q4 of the current fiscal.
Over the long term, demonetisation will be beneficial for the Indian economy but what it is too early to speculate what impact it will have on the third quarter earnings, says Adi Godrej, Chairman of Godrej Group.
This is the company's first project in Noida-Greater Noida market. The township 'Godrej Golf Links' is being developed as a joint venture with ACE Group, a local developer in NCR.
"Even when America had prohibition, it led to mafia being formed etc. In India also prohibition has not worked. It's fruitless trying prohibition. I don't think we should encourage it", he said.
Godrej Group would look at listing animal feed and agri-business company Godrej Agrovet, though no time frame has been proposed for the exercise.
"Now, we are going to finalise the GST rates of taxes. And some people are talking about higher rates that will be very much against the interests of the economy. So, reasonable and low rates will be the best for the economy," he said.
"We are giving a strong emphasis on inorganic growth. We are also looking to acquire businesses in the developing countries of Asia, Africa and South America," Chairman of Godrej group Adi Godrej said.
RC Bhargava, Chairman of Maruti Suzuki, said that the GST is a good move, but the focus should be on implementing it once the legislation is passed. Legislation on paper won‘t be good unless there is implementation, he said.
The acquisition of 'Strength of Nature' by Godrej Consumer Products will help the firm's international revenues exceed its Indian sales in FY17, says Godrej Group Chairman Adi Godrej.
Speaking to CNBC-TV18, Adi Godrej, Chairman of the Group said that the company is happy to increase its stake in the subsidiary and that the operations from sales in Kenya are high.
Watch accompanying videos of Antique India Conference 2016, wherein eminent guests like Dilip Shanghvi, MD of Sun Pharmaceutical Industries, Adi Godrej, Chairman of Godrej Group and Sanjay Nayar, CEO of KKR India expressed their views about Budget and economic reforms in India.