New Delhi | Furniture maker Godrej Interio will invest up to Rs 300 crore in the next one year to expand its manufacturing capacity and sales network. Besides, the company is aiming at over 15 per cent market share within three years by introducing innovative designs, and expanding its network.
Godrej Interio has Rs 800-crore turnover and about 8 per cent market share in the segment and we want to have at least 14 to 15 per cent market share in next three years, Godrej Interio Chief Operating Officer Anil Mathur said.
Branded furniture market in India is around Rs 10,000 crore and is growing annually between 15 to 20 per cent. The company has been growing at 23 per cent for the last three years. On company’s expansion plans, Mathur said: We are investing in machines across the country.
Close to Rs 300 crore is invested in the backend and the frontend, depending on the need. The company, apart from expanding its Haridwar unit, is also coming up with two greenfield units at Shirwal, Pune and Khalapur near Mumbai that would be functional in next two years, the COO added. On network expansion, he said: Practically we have a dealer in every district headquarter of India and we are improving those to give a better experience to the customers.
Godrej Interio has a network of 700 dealers. It has 200 exclusive retailers, in which 51 stores are company-owned, company-operated and the rest are on franchise stores. We are looking to add another 100 exclusive stores in next three years. It would be mostly based on franchise model, Mathur said. Elaborating on the plans he said, We have started user friendly designs.
The growth would also come from our existing stores and new stores which we would open in the coming years. The Godrej group firm, which exports furniture to Africa, the Gulf and South American markets is looking at increasing contribution from overseas market. Exports contribute 5 per cent of our total sales. It would go higher, he said.