White goods maker Godrej Appliances has launched a portable cooling device for food and beverages. Called ‘Qube’, this device uses thermoelectric technology that is considered a greener alternative to traditional cooling. In FY20, this product is expected to add to the growth in the refrigerator business that contributes almost 57 percent to its Rs 4,300 crore revenue.
In an interaction with Moneycontrol, Kamal Nandi, Business Head & Executive Vice President, Godrej Appliances said they have been testing the product for the past six to eight months.
The product, priced at Rs 7,000 has a 30-litre capacity and can be used for cooling purposes only and not freezing. Unlike traditional refrigerators, the product does not have a compressor or refrigerant. The company is looking to sell 50,000 products in FY20, 100,000 in FY21 and 200,000 in FY22.
Revenue growth areas
As temperatures soar, sales of products like air-conditioners (AC) and refrigerators would grow.
“Penetration of ACs is only 4 percent in India versus 30 percent of refrigerators. Hence, we believe that ACs will be a lead growth category,” he added.
ACs are currently under the 28 percent slab of goods and services tax (GST). Nandi said they are hopeful that the new government will reduce the GST rate on ACs to 18 percent, a factor that will boost its penetration further.
In FY20, Nandi said the company is looking to grow its revenue by 20 percent. In FY19, the company’s revenue stood at Rs 4,300 crore. Of this, the share of the AC segment was 18 percent that is expected to increase to 20 percent.
“The AC business will grow faster than our revenue. We are expecting ACs to see 25-30 percent growth in their revenue in FY20,” he added.
The new product
Godrej Appliances’ new launch Qube is their initiative to reduce global warming. Most traditional refrigerators use chlorofluorocarbons as refrigerants that are said to deplete the ozone layer, leading to warmer temperatures across the globe.
Nandi added they have taken efforts to reduce their energy consumption by 30 percent through their hydrofluorocarbon-free refrigerators and ACs.
Qube has a stabilizer-free operation and is also compatible with home inverters. Since it is a cooling product, food and beverages do not need to be defrosted before consumption. The product can also maintain the cool temperatures for up to 3 hours after a power cut.Going forward, Nandi said the emphasis will be green, energy-efficient and technology-led products. The company is working on launching a refrigerator with remote sensing and preventive servicing features.