Premiumisation, AI-Led Innovation Help Godrej Outperform Slowing Durables Market in FY25
Reflecting on industry trends and the road ahead, Kamal Nandi, Business Head and Executive Vice President – appliances business at Godrej Enterprises Group, said the durables sector witnessed moderated consumption during the year, influenced by environmental and macroeconomic factors.
Mumbai, December 24: FY25 proved to be a year of resilience for India’s consumer durables industry, with premiumisation and innovation enabling select brands to outperform a broader market slowdown, according to Godrej Enterprises Group.
Reflecting on industry trends and the road ahead, Kamal Nandi, Business Head and Executive Vice President – appliances business at Godrej Enterprises Group, said the durables sector witnessed moderated consumption during the year, influenced by environmental and macroeconomic factors. He noted that the GST reduction on air conditioners was a significant policy development for the industry.
“This year the durables industry at large has been witnessing a relative slowdown in consumption driven by environmental and macroeconomic factors. The GST reduction on ACs was a big announcement for the industry. On one hand its early announcement in August slowed down the sales till festive, but on the other, it gave a boost at the onset of the festive sales,” Nandi said.
Despite the overall slowdown, premium categories continued to show stronger momentum. Nandi pointed out that consumers are increasingly gravitating towards higher-value products that offer enhanced comfort, convenience and design.
“The premiumisation trend continues with premium segments like frost-free refrigerators, split air conditioners and front-load washing machines performing better than mass segments. Consumers are largely looking for value-driven offerings for more convenience and comfort. Aesthetics is another aspect that continues to gain consumer attention,” he said.
Against this backdrop, Godrej Appliances delivered double-digit growth in FY25, outperforming the broader durables market. According to Nandi, washing machines led growth, followed by air conditioners and refrigerators. While refrigerator growth was strongest in cities with populations above one million, air conditioners and washing machines saw healthy demand across both urban and rural markets.
“Despite the degrowth seen in the industry, at Godrej, we have maintained double-digit growth, leading with washing machines, followed by air conditioners and refrigerators. This comes on the back of a robust portfolio with advanced technologies aided by a combination of brand building efforts, network outreach and smartly crafted promotions,” he said.
Innovation has been a key differentiator, with AI playing a growing role in product development. Nandi said more than half of Godrej’s current appliance portfolio is now AI-powered, helping the brand cater to evolving consumer expectations.
Looking ahead to FY26, Godrej remains optimistic about sustaining strong momentum.
“Currently, over half of Godrej’s portfolio is AI-powered. With the right mix of affordability, accessibility and newer launches, we are confident of further strengthening our position in the market and expect over 20% growth at the end of the financial year,” Nandi said.
Industry observers note that as demand shifts towards premium, energy-efficient and technology-led appliances, brands that combine innovation with wide distribution and strong brand recall are likely to remain well positioned for growth in the coming year.
