Godrej Group banks on e-commerce to achieve 'Vision 2020' target
New Delhi: Godrej group, which is eyeing a ten-fold increase in business volumes within a decade, is banking heavily on e-commerce to achieve its 'Vision 2020' target.
"For us, e-commerce is an extremely important channel going forward. All our businesses are focusing on e-commerce for sale of products. Though the share of e-commerce in our group is restricted to single-digits, still, we do see some leads," Godrej Group Executive Director and Chief Brand Officer Tanya Dubash told PTI on Tuesday.
For each vertical, it studied what is the best e-commerce fulfilment method and it is implemented, she said during the sidelines of launch of non-web based, mobile browsing experience, FreeG and a consumer connect initiative Masterbrand 2.0.
Commenting on 'Vision 2020', she said that her company has been witnessing a Compounded Annual Growth Rate of 26 percent on a year-on-year basis, which was a satisfactory pace.
In the appliance segment alone which currently has an annual sales turnover at Rs. 2,600 crores, the group envisages 6-8 percent business revenues coming from e-commerce channel by 2020 in the segment.
"Currently, 2-3 percent of our business is coming from e-commerce channel. However, we are looking at 6-8 percent of our business to come from e-commerce over next five years (in the segment). For this, we have already partnered with e-commerce sites like Flipkart and eBay. Moreover, we have got our own sites," Godrej Appliances AVP Ramesh Chembath said.
Godrej Tyson Foods, which is into ready-to-cook and fresh chilled chicken segment and is currently growing at 16-18 percent annually in terms of business volumes, is also working with a couple of e-commerce firms to widen its last mile reach.
"A couple of e-commerce companies are working with us for past 4-5 months. They are trying to develop a model so as to ensure delivery of products at the doorstep of customers," Godrej Tyson Foods' chief operating officer Arabind Das said, without disclosing the name of the two e-commerce companies.
Another company official said that they have tied up with all the food-based e-commerce sites for sale of products.