Security and locking solutions provider Godrej Locking Solutions and Systems (GLSS) has set its eyes on the Centre's smart cities initiative to push up the premium and luxury locks business for the lock industry.

Estimated at ₹4,500 crore, the domestic locks industry gets about 85 per cent of its business from urban centres, while only 15 per cent comes from the rural market. This composition prompts lock makers to look at urbanisation as the potential business generator. Looking at the sharp tilt towards urban centres, Godrej eyes smart cities projects to fuel the sale of premium and luxury locks, which constitute about 10-15 per cent of the total turnover at present.

"The industry is growing at the average rate of 11-12 per cent for the last four years, but at Godrej we are maintaining a higher growth average growth of 22 per cent. With projects like smart cities and growing awareness about the security of assets, there will be faster growth in the premium and luxury segment of the locks," said Shyam Motwani, Executive Vice-President and business head, Godrej Locking Solutions and Systems.

Motwani expects to achieve a turnover of ₹750 crore for the current fiscal, 2016-17 indicating approximate 15 per cent year-on-year growth. He announced the company's foray into the premium mortise locks segment with price range of ₹14,000-17,000. The premium mortise market in the country is estimated at ₹2,000 crore, of which the luxury segment is pegged at ₹300 crore.

Godrej gets 15 per cent of its total turnover of ₹650 crore from premium and luxury segment, while the majority 85 per cent revenue share comes from mass and medium segments.

Currently, 40 per cent of the company's revenues come from the Southern markets, followed by the West and North markets. Godrej also looks to increase the share of exports to the revenue from the current 3.5 per cent to about 4-5 per cent of the turnover this fiscal. Majority exports go to African countries, West Asia and partly to SAARC nations.

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