Godrej Interio eyes 25% revenue growth, to invest Rs4,000mn in 3 years

Godrej Interio, a leading furniture manufacturer in India, is looking at 25% growth of its revenue to Rs25,000mn in the current financial year, a company official said here yesterday.The company plans to invest Rs3,000mn in its plants and machinery for a period of three years and Rs1,000mn would be invested in the current fiscal for opening new 35 stores across India, company’s chief operating officer Anil S Mathur said. “Our revenue is expected to reach Rs25,000mn in the current financial year while the company posted a revenue of Rs20,000mn in the last fiscal,” he told media persons on the sidelines of the opening of a flagship store here.Of the company’s total revenue last year, the business to business (B2B) segment, including office furniture, turnkey projects, healthcare and lab furniture and others, clocked a revenue of Rs12,000mn while the revenue from business to consumer (B2C) segment was Rs8,000mn.“We are expecting B2C segment to grow to Rs15,000mn and revenue from B2C is expected to be reaching Rs10,000mn,” he said.“Our total investments in plants and machinery in the next three years would be Rs3,000mn,” he said, adding that it has seven manufacturing facilities situated at Mumbai, Haridwar, Shirwal and Bhagwanpur. In addition, the company would be investing Rs1,000mn in the current fiscal for opening of 35 new stores across India . In its portfolio of furniture, non-metal products have a share of 75%-80% while metal furniture has the share of 20%-25%, he said.The company, which has presence in multi-brand online sites, is coming out with an own e-commerce site in the next 4-5 months, Mathur said.Mathur said the market for home furniture for organised players has been growing by about 20% while the growth for overall market including organised and unorganised was about 8%-10%.With the reduction of Goods and Services tax rates from 28% to 18%, the organised players became more competitive because pre-GST period, overall taxation including excise duty and sales tax was to the tune of 27%.He also said the home furniture segment in India was estimated to be around Rs500,000mn and the organised players have 20% market share. From a state perspective, West Bengal market was estimated to contribute about Rs50,000mn.“Bengal market contributed nearly Rs2,000mn to our overall revenue last year,” he added.