FY25 proved to be a year of resilience for India's consumer durables industry, shaped by macroeconomic pressures, evolving consumer expectations, and a steady shift towards premium products. While overall consumption witnessed a slowdown, companies with strong portfolios and innovation-led strategies managed to outperform the broader market.
Reflecting on the year, Kamal Nandi, Business Head and EVP - Appliances Business at Godrej Enterprises Group, highlighted the mixed impact of policy changes and market conditions.
Kamal Nandi on GST reduction on ACs
"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 the festive season, but on the other, it gave a boost at the onset of the festive sales."
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Premiumisation being a growth driver
Nandi noted that premiumisation remained a key growth driver even as mass segments faced pressure.
"The premiumisation trend, however, continues with premium segments like frost-free refrigerators, split air conditioners, 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."
Despite industry-wide degrowth, Godrej Enterprises Group reported strong performance across categories.
"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. While the growth is highest in the 10L+ cities for refrigerators, for other categories like AC and Washing Machines, both large cities and rural markets have shown good growth."
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How did Godrej Industries perform so well?
He attributed this performance to technology-led offerings, brand initiatives, and extensive distribution reach.
"This comes at the back of a robust portfolio with advanced technologies aided by a combination of brand-building efforts, network outreach, and smartly crafted promotions. 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."
As FY25 draws to a close, the outlook for the consumer durables sector remains cautiously optimistic, with premium products, technology integration, and value-driven innovation expected to shape growth in the coming year.
