The COVID-19 vaccination drive will lead to an up to 40 per cent jump in revenues from medical refrigeration equipment for Godrej & Boyce in FY21, a senior official said on Tuesday.
The share of medical refrigeration equipment used for vaccine storage in the overall revenue pie of Godrej Appliances is also likely to go up to 8 per cent on the back of the high revenue growth, the official said.
India has launched one of the biggest vaccination drives in the world to immunise its population against COVID-19 infections. The programme aims to reach out to 300 million in the first phase alone and the company said a Rs 35,000-crore allocation has been done by the government towards it.
Answering a question on revenue share from medical refrigeration, Godrej Appliances' business head Kamal Nandi said at present the share is only 5 per cent, which is likely to go up to 7-8 per cent on higher growth. "I expect this (revenue) to go up by at least 30-40 per cent in the current financial year and (the share) go to 7-8 per cent of the contribution," he told reporters. Godrej Appliances has a revenue of approximately Rs 4,500 crore in FY20.
The company announced the launch of ultra-low temperature freezers, which can also handle the Pfizer vaccine, which is required to be stored at (minus) 80 degrees Celsius, and also using the mobile medical clinic platform to take vaccines deep into the country. Nandi said the company is investing in augmenting its manufacturing capacity to produce over 30,000 units of the ultra-low temperature freezers from the present 10,000 units.
The company already had capabilities of handling till (minus) 20 degrees, and given the power situation in the country, its focus is on how it can deliver solutions wherein the temperature can be maintained inside the refrigerator for long hours even during a lack of electricity supply. Godrej & Boyce's Chairman and MD Jamshyd Godrej said the urgency and the scale of the drive are unprecedented and hoped for the vaccine cold chain to get a big boost because of the spends announced by the government.
Nandi said it expects demand for the medical refrigerators to continue for at least one and half years, given the vaccination requirements domestically, and added that there will be demand from neighbouring countries, and nations in Africa and Europe, which the company will be eager to cater to. The deep freezer device costs between Rs 60,000 to Rs 1.5 lakh based on the capacity and the same goes up if one opts for solar power back up as well.