Godrej Appliances to expand Shirwal plant

Pune: White goods maker Godrej Appliances will spend about Rs 200 crore to expand its consumer electronics plant at Shirwal in the Satara district.

“We will increase the capacity of our Shirwal plant for manufacturing more products in the premium category, both for domestic and commercial purposes. We target to complete the expansion works by the end of 2019,” Kamal Nandi, executive vice-president of Godrej Appliances, said. He added that the plant, which will add about 400 new jobs, will be used to service the export market as well.

Nandi was speaking on the sidelines of the commercial launch of Godrej’s new single-door refrigerator, Edge Duo.

Nandi said the “expected” reduction in goods and services tax (GST) rates for electronics will deliver a booster shot for companies like Godrej. He added that the upcoming Union Budget should have consumer incentives for efficient electronics, a term applied for appliances rated 4 and 5 stars by the BEE.

“Besides bringing the GST rates down in the upcoming meetings, the government should also have provisions in the upcoming Budget to incentivise consumers to buy more efficient products. Since energy norms are being tightened, more investments are needed. Higher rates make affordability a difficult issue for consumers and manufacturers will not recover costs,” Nandi added.