Usha International Targets 40 pc Retail Sales Growth in FY21
Usha International Targets 40 pc Retail Sales Growth in FY21

Home appliances major Usha International has set a target of 40 percent retail sales growth this fiscal, banking on pent-up demand from consumers who are beginning to take the Coronavirus pandemic in stride as vaccinations accelerate. With e-commerce getting a massive push due to the pandemic, the company also expects the share of online sales in its total in double digits this year.

Kapil Kohli, President (Retail), Usha International, said, "We are very positive that we are setting a target of 40 percent growth for ourselves. If something goes down in May, you will get a recovery of 78 percent growth in July. So it offsets that and it averages out at around 38 to 45 percent."

Last year, the company's overall sales grew in single digit as the offline channel was closed for three months and the lockdown hit sales of appliances like fans, and coolers in the peak season.

Explaining the rationale behind the company's bullishness this year, Kohli said, "Consumers have also started accepting this pandemic, not as a pandemic but as a part of their lives. They know that this will be with them for more period."

Commenting on the impact of COVID-19 on online sales, Kohli said three to four years back before the pandemic, contribution from the channel was 5 percent in the industry.

"In the last two years, things are going and moving towards the double-digit contribution. I believe this is not just with our organization (only). If you see across the ecosystem of consumer-driven industry, you can see by 2025 it will be in double digits," he added.

As for Usha International, Kohli said, "I foresee that when this year ends it will touch and enter into the double-digit contribution. That is the way it is moving (towards)."

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