Godrej Appliances-Quote on new star labelling

Spokesperson: Mr. Santosh Salian, Product Group Head-Air Conditioners, Godrej Appliances

“The new energy-rating norms will improve the energy efficiency of air-conditioners by 10%. Given the power consumption of ACs, this 10% is significant and will generate savings for consumer in the long run. The current 5 Star AC with 4.5 ISEER will be upgraded to 5.0 ISEER, and the 3 Star AC with 3.5 ISEER will be upgraded to 3.8 ISEER.

Godrej Appliances has always laid high emphasis on sustainability and energy efficiency, and we are prepared with our new product portfolio basis the revised energy-rating norms. Beginning July, we will start selling the new star-rated ACs; starting with the new 5 Star and 3 Star rated ACs. More products will be added over the year. The new star rated products with new ISEER norms will also be promoted in the upcoming festive season.

In terms of demand, the air conditioning industry is seasonal, with 75% of sales occurring between January and June. Currently, with the onset of monsoon, we are entering the lean season. Further, because of the new energy efficiency norms, there will be 6-7% price increase in 3 Star Inverter Split ACs, while for the cost increase for 5 Star Inverter Split AC will be around 10-12%. Therefore,3 Star ACs would garner higher demand in comparison to 5 Star ACs.Godrej, given its focus on energy efficiency will continue to drive a higher mix of 5 Star Inverter Split ACs, compared to the industry mix. We are also increasing the focus on higher ticket SKUs, e.g. 2Tr Split AC mix, in this financial year.

Inverter Split AC mix now constitutes more than 70% of the Split AC. With the new table upgrade, the cost of the Fixed Speed ACs with 3.8 ISEER will go up. And as Fixed Speed Split AC will become more expensive by over Rs 1000 -1500 against a corresponding Inverter Split AC, we see a higher shift towards Inverter Split AC Mix, in the new star rating regime. We expect, in the coming one year, the Inverter ACs would constitute 85-90% of the Split AC markets.”