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. Also Read - E-commerce rules draft dos and dont’s: No more flash sales on phones, other goods and more
“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 today. Also Read - Facebook will now make money from WhatsApp's in-app purchases
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 per cent on a year-on-year basis, which was a satisfactory pace. Also Read - Flipkart to acquire Rs 1,500 crore worth stake in Aditya Birla Group's Fashion retail
In the appliance segment alone which currently has an annual sales turnover at Rs 2,600 crore, the group envisages 6-8 per cent business revenues coming from e-commerce channel by 2020 in the segment. “Currently, 2-3 per cent of our business is coming from e-commerce channel. However, we are looking at 6-8 per cent 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 per cent 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.