Introduction:
Godrej & Boyce, a well-known part of the Godrej Group, aims to boost the income from its equipment for moving materials by 50% in the next two to three years. The company’s plan involves starting a new factory in Khalapur, Maharashtra, which is expected to start working by the end of 2024.
The centerpiece of Godrej & Boyce’s growth strategy is the introduction of a new forklift truck powered by an advanced Lithium-ion battery. This new battery technology,
which includes a proprietary Battery Management System (BMS) developed entirely in-house, promises significant advancements in performance. The batteries offer up to 15% longer run time for two and three-tonne forklifts and feature a modular design for scalability.
In a notable collaboration with Log9 Materials, Godrej & Boyce has combined lithium-ion cells with 30% local production, with a goal of achieving 100% localization of the cells within a year. This move aims to reduce dependence on imported batteries and BMS systems, which have traditionally been sourced predominantly from China.
Godrej & Boyce Sets Ambitious 50% Revenue Growth Target with New Plant and Cutting-Edge Battery Technology:
Anil Lingayat, Executive Vice President and Business Head for the material handling business at Godrej & Boyce, highlighted the company’s strategic vision: “Our material handling equipment business currently generates Rs 1000 crore in revenue.
With our new innovations and expanded manufacturing capabilities, we are targeting a revenue of Rs 1500 crore over the next 2-3 years.
The new plant in Khalapur will play a crucial role in scaling up production to meet the anticipated demand. By localizing key components and integrating cutting-edge technology, Godrej & Boyce aims to strengthen its position as India’s largest manufacturer of industrial fork trucks, while also supporting the ‘Make in India’ initiative and building a more resilient domestic supply chain.
Conclusion:
This move is expected to not only boost revenue but also enhance operational efficiency and sustainability in the material handling sector, underscoring Godrej & Boyce’s commitment to innovation and growth in India’s industrial landscape.
Frequently Asked Questions FAQ:
1. What is Godrej & Boyce’s revenue growth target?
- Godrej & Boyce aims to achieve a 50% increase in revenue from its material handling equipment division over the next two to three years. Currently, this division generates Rs 1000 crore in revenue, with a target to reach Rs 1500 crore.
2. When is the new manufacturing plant expected to open?
- The new manufacturing plant located in Khalapur, Maharashtra, is scheduled to begin operations by the end of 2024.
3. What is the significance of the new forklift truck introduced by Godrej & Boyce?
- The new forklift truck features a Lithium-ion battery with an in-house developed Battery Management System (BMS). This technology offers up to 15% longer run time for two and three-tonne forklifts and includes a modular design for scalability.
4. How does the new battery technology benefit industries?
- The advanced Lithium-ion batteries are designed for various sectors, including FMCG, consumer durables, retail (including e-commerce), and pharmaceuticals. The longer run time and modular design improve efficiency and operational flexibility.
5. What is the role of Log9 Materials in this development?
- Godrej & Boyce has partnered with Log9 Materials to combine lithium-ion cells with 30% local production. This collaboration is part of their strategy to achieve 100% localization of battery cells within a year.
6. Why is localizing battery technology important for Godrej & Boyce?
- Localizing battery technology reduces dependence on imported components, primarily from China. It supports the ‘Make in India’ vision, strengthens the domestic supply chain, and enhances resilience against global supply chain disruptions.
7. What are the future plans for the new battery technology?
- Godrej & Boyce plans to extend the newly developed battery technology to other material-handling equipment beyond forklifts, aiming to improve overall efficiency and performance in the sector.
8. How will the new plant impact Godrej & Boyce’s operations?
- The new plant will significantly increase production capacity, enabling Godrej & Boyce to meet the growing demand for their material handling equipment and support their revenue growth objectives.
9. What does the company’s commitment to ‘Make in India’ entail?
- Godrej & Boyce’s commitment to ‘Make in India’ involves increasing local manufacturing capabilities, developing indigenous technologies, and reducing reliance on imports. This aligns with the broader national goal of fostering a self-reliant and resilient industrial sector.
10. Who is Anil Lingayat and what is his role in this initiative?
- Anil Lingayat is the Executive Vice President and Business Head for the material handling business at Godrej & Boyce. He oversees the strategic direction and growth initiatives for the material handling equipment division, including the new plant and battery technology advancements.
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