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Furniture major Godrej Interio said it is expecting up to 30 per cent of its revenue to come from Design HQ three years hence.
“We expect Design HQ to contribute 20-30 per cent of the overall revenue in three years.... Design HQ will have workshops involving in-house as well as leading industry designers to develop new contemporary designs,” Godrej Interio COO Mr Anil Mathur told PTI here.
The company is expecting its overall revenue to go up by 25 per cent to about Rs 1,500 crore in FY12. “We have set a revenue target of $1 billion by FY17,” he said.
Design HQ will be launched in the existing Godrej Interio’s exclusive stores in Mumbai in the first quarter of the next fiscal, and then expanded to other metro cities. It will also develop customised designs suited to the customer’s individual needs, Mr Mathur said.
Godrej Interio has 50 company-owned retail stores, and 45 franchisees (both furnishings and kitchenette) in the country.
“We plan to focus on the franchise model and are looking at 200 stores in the next two years,” he said.
Godrej Interio, a business unit of Godrej & Boyce, is eyeing 25 per cent market share in the organised segment in next three years. “On the back of the growing demand for our products, we hope to capture 25 per cent market share of the organised furniture segment in another three years. At present we are enjoying around 20 per cent share,” Mr Mathur said.
The total furniture market in the country is estimated at around Rs 40,000 crore, of which only up to 15 per cent is organised, he said.
“We have signed exclusive marketing agreements with Korea’s Sejin for marine accommodation solutions, Japan’s Itoki and the US’ Knoll Inc for office furniture. Recently, we tied-up with Netherlands’ LINET Group for hospital and nursing home furniture and with this, we are now present in almost all the furniture verticals,” Mr Mathur said.
All these marketing tie-ups will later be expanded to production agreements, depending on the market scenario, he added.
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