Godrej Enterprises Targets 50% AC Sales Growth in FY26

New Delhi, Mar 25 (PTI) Godrej Enterprises Group expects sales of its air conditioners to grow 50 per cent in the next fiscal on the back of continued robust demand and its new range of products, including smart ACs, a top company official said on Tuesday.

With the early onset of summer, the group expects the overall industry demand for ACs to be strong at around 30-35 per cent growth but not as high as 60 per cent witnessed last year due to a high base, Godrej Enterprises Group, Business Head & EVP, Appliances Business Kamal Nandi told PTI here.

The group on Tuesday ramped up its AC portfolio, including a premium range of smart ACs and also announced its foray into the commercial AC segment with Cassette ACs and Tower ACs.

"We will be ending this year (FY25), doubling our volumes. We will be closing this year with about 10 per cent market share. This is up from 6.7 lakh to 14 lakh units. We are growing more than 100 per cent against industry growth that will be roughly about 36 per cent," Nandi said when asked about the group's growth prospects.

On the forecast for FY26, he said, "The confidence that we have with the portfolio that we have already built, and the campaign that we have built and the entire premium portfolio on smart air conditioners that we are launching today, it is very clear that we can expect another 50 per cent growth for next year, against industry growth of 30 per cent."

He further said, "We should grow by 50 per cent (in FY26) that's what we are targeting now."

Godrej is focussing on its smart AC segment with multiple new model introductions such as AI-powered technology, IoT connectivity and WiFi-enabled controls, besides pushing more SKUs (Stock Keeping Units) in the 5-star AC portfolio and high cooling capacities spanning to 3 and 4 ton and new designer models.

"From AI-powered machines to patented anti-leak technology, unique wood finish ACs to compelling smart ACs and powerful commercial ACs, our endeavour is to meet the premium aspirations of our consumers," he noted.

The new smart ACs from Godrej are priced starting from Rs 42,900 and will be available across India in authorised stores, and e-commerce platforms.

As for the overall industry, Nandi said in FY25 it should touch about 14 million units and is expected to grow by around 30 per cent to reach 18 million units in FY26.

For this summer season, Nandi said the company has prepared itself based on the experience of last year when severe heat across the country resulted in a huge spike in AC consumption and there were even short supplies.

Already in some parts of India there were high temperatures in February and AC consumption has started for the summer, he said, adding "We expect even this year that the consumption will be high. It may not be at a level of 60 per cent because the base has already moved up, but our expectation is that the market should grow by 30-35 per cent (this summer).