Focused on consumers Godrej & Boyce

FOCUSED ON CONSUMERS

One of the largest privately held diversified industrial corporations in India, Godrej & Boyce Manufacturing Co. Ltd has 15 business divisions producing consumer, office and industrial products and services – the flagship division being Godrej Appliances. Felicity Landon reports.

WITH customers in every corner of India, and a range of business activities that encompasses everything from locks and security systems to refrigerators that play music, Godrej & Boyce isn’t easily pigeonholed. The firm has a history going back to 1897, when a young man named Ardeshir Godrej gave up law and turned to lock-making. He went on to make safes and security equipment, and then created a real stir by making toilet soap from vegetable oil.

Today, Godrej & Boyce employs 10,800 people and runs a network of company-owned Godrej Interio retail stores, 2200 wholesale dealers, and more than 18,000 retail outlets. Its divisions include appliances, AV solutions, construction, electricals and electronics, furniture (Interio), motors, locks, material handling, precision engineering, precision systems, process equipment, security solutions, storage solutions, tooling and vending.

Of these, Godrej Appliances is the flagship division, producing refrigerators, washing machines, air conditioners and microwave ovens.

The company’s core philosophy is ‘Designed by Curiosity’ and ‘Brighter Living for Consumers’, and new products are designed by closely understanding Indian consumer preferences and aspirational values.

Cool sounds

Hence the launch, earlier this year, of the ‘Edge SX MuziPlay Refrigerator’, which is a refrigerator plus FM radio plus MP3 player.

While cooking in the kitchen, consumers can now listen to their favourite FM programme, plug in a pen drive with MP3 songs or even a mobile phone loaded with MP3 songs, or charge their mobile phone, says Mr Kamal Nandi, vice president, sales and marketing. The idea is that women who spend most of their time in the kitchen can enjoy music while they cook.

“Today consumers are quite aware of their options and clear about what product they desire,” says Mr Nandi. “For instance, in the refrigerator category consumers look at features like freshness, storage efficiency and stylish exteriors to match their discerning lifestyles. With the launch of the Edge SX MuziPlay Refrigerator, India’s first musicenabled refrigerator, we have set another milestone in our strong legacy in R&D. We are totally committed to pioneering new technologies to meet the changing needs of the Indian market, staying true to our philosophy, ‘Designed by Curiosity’.”

Godrej Appliances’ general manager, North, Mr Abhay Devi, adds: “We have transformed the refrigerator from a ‘passive appliance’ into an ‘active entertainer’ in your kitchen. This launch marks the beginning of a new era

in the refrigerator category by Godrej Appliances, setting new benchmarks in the Indian consumer durables industry.”

Apart from its unique musicality, the refrigerator offers StayCool Technology – promising a 24-hour cooling retention despite power cuts. That’s important in India, where there are unpredictable power supplies in many parts of the country. “This superior cooling retention reduces the inconvenience of ice melting down and food spoilage during power cuts,” says Mr Devi. The appliance also features a ‘step designed freezer’, ensuring fast ice-making and better use of space, making way for a unique chilling zone; and Silver Ion Freshness Technology in the convection control flaps, to fight germs and ensure longer-lasting freshness of food.

Godrej was actually the first Indian company to manufacture refrigerators and has become synonymous with the category. The company pioneered the launch of polyurethane foam, which became the new benchmark for the refrigerator industry. Innovative technologies

In the past year, Godrej has introduced more than 100 new products across various categories – refrigerators, air conditioners, microwave ovens, washing machines and televisions. Its innovative technologies include Silver Shower Technology in refrigerators, i-Sense and EM5 in air conditioners, Game LCD in televisions, Insta-Cook in microwave ovens and Tilted Drum in washing machines.

The firm’s move into the television market has been particularly important in recent times. Television production began with a small-scale pilot project in Andhra Pradesh three years ago, but quickly emerged as a major revenue generator for the company.

“We are looking at 10 per cent of our turnover, which is estimated at Rs2,700 crore, from televisions in 2011–12 against 8 per cent in 2010–11, on the back of sequential expansion in different parts of the country,” says Mr Nandi.

The company may be a relatively late entrant into this market, but it already has a television manufacturing presence in seven states.

Mr Nandi says north India is the biggest market of traditional CRT television, while the west and south are big markets for LCD and LED technology. While growth in CRT TVs has flattened to 2–5 per cent a year, LCD and LED appliances are increasing at 40–50 per cent a year – albeit on a lower penetration.

The company entered into an alliance with a European company in 2008 for contract manufacturing in Uttarakhand; this facility, representing an initial investment of Rs150 crore, is now producing CRT televisions in screen sizes from 15 to 42 inch. However, at present the LCD and LED products are being imported from Turkey, because manufacturing these in India would not be viable, says Mr Nandi.

With high inflation rates and interest rates, the Indian consumer durables industry has seen a slowdown in growth in the past few months – but the Godrej philosophy remains one of continuing innovation, as it understands, and meets, the specific needs of its unique consumer market.

The launch in 2010 of its revolutionary Tilt Open Drum Technology for washing machines is a good example of this. The technology is used in the Eon Ergoz washing machine, giving consumers the convenience of a top-loading washing machine with the efficiency of a front loading washing machine; the Tilt Open Drum is positioned at an angle of 15 per cent, so the user does not have to bend while putting in or taking out clothes.

The Eon Ergoz range also offers Ozone Clean Technology, which sterilises clothes without water at the end of the wash rinse spin, killing 99.9 per cent of bacteria and removing traces of odour. An Air Clean programme with Ozone Technology is also incorporated, for one-time wear clothes, shoes, handbags and leather goods, and the range is highly efficient, using 21 per cent less power and 11 per cent less water and giving 34 per cent better drying compared to other machines in the category.

“Being a consumer-focused appliance manufacturer, we want our customers to get full value from the appliance they purchase,” says Mr Nandi. “Besides offering them relevant technology that specifically addresses their needs, we also focus on design and aesthetics to enhance the customer experience.” n