GODREJ CHOTUKOOLGroup Member:Mukesh Kumar SinghAmirt RanjanDeepenadra kumarArvindRavi SirirajTousif RazaINTRODUCTIONGodrej & Boyce (G&B) to launch a new innovative product Chotukool-a small refrigerator.

Target Market : Rural India

Price : Rs. 3500

Got good publicity through test marketing.

Vice President to meet Chairman (Jamshyd Godrej) to discuss issues

Indian Refrigerator Industry

Market Value: Rs. 40 billion(2010)Penetration Level :Urban : 18 %Rural : 2%Reasons why refrigerator is not essential to villagers

UnaffordabilityIrregularity of electricity supplyHigh prices (Rs. 7000-70000)

Market value of consumer durables : 250 billionShare of refrigerator = 16%Growth rate = 7-8%

Godrej & BoyceProfile It is a $ 17 billion conglomerate.It is a manufacturing company of Godrej group.Started in 1897Founder : Ardeshir Godrej (Lawyer-cum-locksmith)It is diversified company expanded business in fifteen areas. Present in more than 60 coutries

The Journey of ChotukoolJune : 2007

The team spent time with people in villageFigured out need of the consumers as: People dont buy in bulk, -so a small refrigerator will be enough for them they dont have budget to buy costly refrigerator- they wanted refrigerator in around Rs.2500- they dont want additional cost in service operation and maintenanceThey dont have space to keep it- they needed refrigerator of small sizeThey dont have enough electricity- a refrigerator independent of electricityLowest Price : Rs. 7000But there was huge market below this price which needed to be tapped

Next step was to communicate all these need to R & D department to prepare design(Prototype).

Once these released in market for test it got some more input to make changesVillagers used it at home and to make money too.Manufacturing /specification

Chotukool technology core: peltier cooling.The thermoelectric module used in Chotukool contained an array of thermocouples connected electrically in series and thermally parallelThe semiconductor material used in the module was bismuth telluride.Chotukool can work on inverter or battery and uses high end insulation to keep stuff cool for 2-3 hour during power cut.Keeps the food stuff 20c below the ambient temperature.Lesser moving parts so require less maintenance.The manufacturing unit was located in satara,mumbai,indiaDistribution: Community-based model

NGOSelf-help groupsIndia PostMicro-finance institutionsChallengesLower the price to increase affordability ?How should they segment market ?Right business model?How should they scale up operations?