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Godrej Storage Solutions, part of the Godrej & Boyce Manufacturing Co Ltd, plans to set up a second facility near Chennai to manufacture components of storage systems used in warehouses and shop floors, including pallet-racking and shelving solutions.
The annual production capacity of its Ambattur plant is 90,000 tonnes and it will produce 67,000 tonnes, or nearly 75 per cent of capacity, this year. “We are okay with this situation for another 18 months and have started making plans for another plant in or around Chennai,” said Vikas Choudaha, Executive Vice President and Business Head, Godrej Storage Solutions.
“If we have to build a similar capacity as the Ambattur plant, ₹350-400 crore is the minimum investment required, plus the land cost,” he told mediapersons at the plant. Chennai will be the first choice for its access to the port, he added.
Intralogistics, an area of focus for the company, involves storage, movement and handling of goods within a premises. Third-party logistics is the biggest sector for the company with TVS Supply Chain Solutions and DHL as major customers, he said. “We provide the storage systems for them while they are the solutions providers,” he added.
Choudaha said the company eyed ₹1,000-plus crore revenue this fiscal and ₹1,500-1,600 crore revenue in the next three years, including ₹500 crore from exports. Growth was flat last fiscal due to unfavourable steel prices. Nearly 50 per cent of revenue is from consumer-driven industries like retail, e-commerce, FMCG, F&B and consumer durables, he said.
“The domestic industry is looking at 8-10 per cent growth. We want to grow in the domestic market in line with that,” he said. Opportunities in global markets such as West Asia, Asia Pacific and Australia are good. Many clients are looking at a China-plus strategy, with India as an option, he said.
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