Appliances industry expected to grow by 12-15% in 2025: Kamal Nandi

As we conclude another year, it is essential to reflect on the key developments, challenges, and achievements that have shaped different sectors throughout the past 12 months. The year 2024 has been marked by dynamic shifts, rapid innovation, and the continued adaptation to both external factors and emerging trends.

Adgully’s annual feature – REWIND – revisits different sectors and identifies the key developments as well gauges the long-term impacts of those developments. We speak to a cross-section of industry leaders to bring a 360-degree view of the industry landscape, the growth trends, financial performance, disruptions, innovations, challenges and more.

In this Rewind 2024 article, Kamal Nandi, Business Head and EVP - Appliances Business, Godrej Enterprises Group, speaks at length about the growth witnessed in the appliances industry in 2024 and the key trends that dominated the year.

Godrej Enterprises Group’s performance in 2024

The appliances industry witnessed a strong growth in 2024, driven by unprecedented heat level, favourable market conditions and evolving consumer preferences. The industry displayed a growth of 19.3%. ACs dominated the year with 35.3% growth. At Godrej Enterprises Group, we witnessed an impressive 52% growth in appliances compared to the previous year. While premium categories continued to show good pull, the mass market also demonstrated healthy traction across geographies.

In 2024, we recognized a seismic shift in India’s consumer preferences, where appliances buying choices were not just utility driven. To address this evolving landscape, we launched our innovative Eon Vogue series of refrigerators and air-conditioners. These appliances came with a nature-inspired wood-finish that harmonised with Indian home décor.

Furthermore, our AI-powered appliances have redefined convenience, learning and adapting to consumer needs to provide a truly elevated experience.

Key trends and developments

• Despite inflation, consumer sentiment remained largely upbeat, and discretionary spending continued to hold steady especially for premium households.
• Finance-led purchases continue to propel sales. Consumers find it easy to upgrade to higher capacities and better features with flexible finance options. Finance attributes to close to 40% of the total industry sales.
• Digital, social, and e-commerce channels are playing a significant role in building awareness and driving consumption. E-Commerce contribution is growing year by year for the industry.
• The heat wave was more intense and prolonged during the summer months in several Indian regions, making cooling appliances like air conditioners a necessity rather than a luxury for many households. In a survey conducted by us, more than 50% respondents reported that their AC usage this summer had doubled (or more). Close to two-thirds claimed that the number of ACs installed in their home had gone up in the last two years.

Expectations from 2025

Looking ahead, we expect the appliances industry to grow by approximately 12-15% in 2025, with Godrej targeting a growth rate of more than 30%, driven by cooling appliances, premium segments, larger capacity segments coupled with intelligent offerings which are expected to continue driving demand.

Also Read: Godrej Appliances announces 5 Year warranty on split air conditioners