Godrej Locks & Architectural Fittings and Systems (GLAFS), a business unit of Godrej & Boyce, is expecting a 20-25 per cent growth in turnover in the current financial year backed by a steady demand particularly from the Tier III and Tier IV markets and launch of digital door locks and various locking applications with a clear focus on premiumisation.
According to Shyam Motwani, Business Head, GLAFS, the company is expecting to clock a turnover of around ₹1,100 crore by March 31, 2023, up from ₹900 crore as on March 31, 2022.
Pent up demand
“We have seen a huge aberration in overall demand for locks in the last couple of years with the overall market shrinking in 2020 and 2021 due to Covid induced pandemic. But we expect market to bounce back this year and this will be driven by a lot of pent up demand. We have seen a good growth during the first quarter of the current fiscal and we expect the momentum to continue and the festive season is expected to be good this year,” Motwani told BusinessLine.
The Company is expecting 3X growth in business over the next four-to-five years (by FY27). Nearly 60 per cent of its total sales come from locks while the remaining 40 per cent comes from architectural fittings. It expects the share of architectural fittings to grow to nearly 50 per cent in the next few years.
“The headroom for growth in architectural fittings is twice as much as that in locks. So we expect to grow well in the segment,” he said. GLAFS is focusing on expanding its range in the architectural fittings category and showcase their advanced design solutions that are customised for the Indian household.
Demand from eastern States
Eastern India, particularly West Bengal, Odisha and North East, will be a major growth market for the company, which expects this region to account for nearly 27 per cent of its revenues in the time ahead.
Some initiatives taken in West Bengal include proactive efforts for GLAFS products to be available in all rurban (Tier III and Tier IV) cities. The brand is also promoting skill enhancement of sales persons of distributors and retailers. It had launched ‘Godrej Vishesh Labh Club’, a digital initiative that supports the carpenter and contractor community across the country to augment earnings of the local workforce.
“The rising consumer segment in Eastern India has driven the focus of businesses toward capturing opportunities in the emerging market. We have witnessed premiumisation trends in this market specifically in Assam and other North East markets. In our 125th year, we are happy to announce that we not only plan to expand our business with the increased inclination towards digital locks but also in architectural fittings. Modern design and technology play a very important role for us and that is where we will focus our efforts across categories,” he said.
Godrej Locks currently exports to 24 countries across Asia, Africa, USA and the Middle East. It provides locking solutions in international markets. The company expects its share from the overseas market to increase and is also planning to enter the architectural hardware and kitchen systems segment in these markets.