Godrej Interio, the furniture arm of Godrej and Boyce Ltd, is set to invest over Rs 300 crore in the next two years to set up production units and expand retail network.
According to Anil S Mathur, chief operating officer, Godrej Interio will invest close to Rs 250 crore in setting up two manufacturing units in the western and northern regions of the country. Godrej Interio now has eight manufacturing units.
“We are expanding our presence across the country and this calls for going closer to the markets by setting up a base for manufacturing,” Mathur said.
Plans are also afoot to set up a manufacturing unit in the east. Eastern region accounts for nearly 29 per cent of its total sales, which stood at Rs 1,500 crore in 2012-13. Sales from the region have been growing by more than 25 per cent on a year-on-year basis.
“We are looking at having a manufacturing unit in east. We require at least 20 acres of land with a minimum investment of around Rs 100 crore. The location though is yet to be finalised,” he said.
The company aims to achieve 26 per cent growth in sales this year.
“We want to achieve a turnover of Rs 5,000 crore by 2016-17,” he said.
The growth would come from the healthcare and hospitality segments in its business-to-business (B2B) category. B2B currently accounts for 70 per cent of its total sales, while the rest comes from the retail segment.
Retail Network
The company, which has around 165 retail outlets at present, plans to invest nearly Rs 60 crore over the next two years to set up new stores. During the current financial year, Interio will add 75 new stores.
Of the 165, 50 stores are company owned while the remaining are franchise outlets, he said.
Godrej Interio has entered into tie up with Bajaj Finance and ICICI Bank to facilitate EMI based purchases of its products. “We rolled this (finance options) out about 8 months back in certain markets and it has been quite a success,” he said.