Co. Expects To Double Division’s Turnover To Rs 1,000 Cr In 3 Yrs

Vivek Sinha, Economic Times – Delhi – February 2, 2005

GODREJ & Boyce is likely to see a change in its top revenue earner business in the near future. The furniture division, which is the second largest sales generator in the company—after the appliances wing— has charted a strategy to double its turnover to Rs 1,000 crore in three years, which could see it becoming the top revenue earner for the Rs 1,800 crore company.

The growth strategy incorporates various initiatives including supply contract with overseas companies, aggressive plans in the home segment which is being coupled with a retail initiative apart from entering new product segments with tie ups with international specialists.

A S Mathur, vice president & business head, Godrej Furniture & Interiors Division, said, “We are looking at about 30% growth from the division, which is about double of the 15-20% growth being clocked by the furniture industry. Our strategy is based on entry into new segments and new business opportunities including exports.”

Godrej is in the final process of announcing an annual contract with a UK based furniture group wherein it will supply 30,000 units of knocked down furniture to the foreign buyer each year starting in the next few weeks.

Apart from this the company has tied up with Fisher Hamilton, the world’s largest maker of laboratory furniture and fume hoods, which would see it making a big entry into the laboratory business. Godrej has also tied up with Germany based contract furniture manufacturer Kusch & Co, to tap the specialised airport furniture business. Closer home Godrej is planning to look at other opportunities for product out-sourcing.

While currently everything is being manufactured at the Vikhroli plant, the company is toying with the idea of signing exclusive contract deals for some products including steel cupboards to cater to the East Indian market. Thereafter the company would also look at similar arrangement for other products to beat the freight cost factor.

This apart the company is looking aggressively at the home furniture segment, wherein it is looking to build branded retail franchisee set up under ‘Perfect Home’ tag across the country.