Godrej Interio eyes 25% revenue growth, plans Rs 400-cr investment (Lead, correcting para 5)
Kolkata : Godrej Interio, a leading furniture manufacturer, is looking at 25 per cent growth in revenue to Rs 2,500 crore in the current fiscal, a company official said here on Wednesday.
The company plans to invest Rs 300 crore in plants and machinery over three years whereas Rs 100 crore will be invested in the current fiscal to open 35 new stores across India, company's Chief Operating Officer Anil S. Mathur said.
"Our revenue is expected to reach Rs 2,500 crore in the current fiscal while the company posted a revenue of Rs 2,000 crore 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 Rs 1,200 crore while the revenue from business to consumer (B2C) segment was Rs 800 crore.
"We are expecting B2B segment to grow to Rs 1,500 crore and revenue from B2C to Rs 1,000 crore," he said.
"Our total investments in plants and machinery in the next three years will be Rs 300 crore," he said, adding that it has seven manufacturing facilities at Mumbai, Haridwar, Shirwal and Bhagwanpur.
In addition, the company will invest Rs 100 crore to open 35 stores across India.
In its portfolio of furniture, non-metal products have a share of 75-80 per cent while metal furniture has the remaining 20-25 per cent, he said.
The company, which has a presence in multi-brand online sites, is coming out with an own e-commerce site in 4-5 months, Mathur said.
Mathur said that the market for home furniture for organised players has been growing by about 20 per cent while the growth for overall market, including organised and unorganised, was about 8-10 per cent.
With the reduction of Goods and Services tax from 28 per cent to 18 per cent, the organised players became more competitive because overall taxation, including excise and sales tax in the pre-GST period, was 27 per cent.
He also said that the home furniture segment in India was estimated to be around Rs 50,000 crore and the organised players have 20 per cent market share. From a state perspective, the West Bengal market was estimated to contribute about Rs 5,000 crore.
"The Bengal market contributed nearly Rs 200 crore to our overall revenue last year," he added.