Godrej, hitherto a supplier of ready furniture across home, office, laboratory and healthcare segments plans to grow its newly introduced customised home furniture business to Rs 1000 crore in the next three years.
To move from being a products company to becoming a solutions provider, the company launched its home design studio U&US at Phoenix Market City in Pune. This is the third such studio after two pilots in Thane and Khargar, and will serve as the model that will be replicated across cities. Godrej proposes to open 20 such studios across the country in the next one year.
“This is unique not only in India but globally and pioneers a new concept in home decor,” Navroze Godrej, Executive Director and head of Innovation and Strategy, Godrej and Boyce said.
“This is one of the largest disruptive business processes where we are partnering with local carpenters and designer communities to organize a large segment of the unorganized market,” he said, adding that U&US will provide a platform for customers to take their vision and put it into reality without the challenge of having to deal with a battery of vendors.
Equipped with Godrej-patented will enable customers get a three dimensional visuals of their homes in colour and materials of their choice through digital co-creating, each studio will be coupled with a workshop equipped with the latest machines to execute the designs. Godrej has also tied-up with both raw material suppliers for cheaper sourcing as well carpenters for making the designs.
“On an average, a family spends 10-15% of the cost of a house for interiors,” Anil Mathur, COO, Godrej Interio explained adding that while U&US would cost around 20% more than carpentered furniture, it would bring efficiency in manufacturing and sourcing.
With a plan to introduce 50 studios, the division expects to achieve a turnover of Rs 1,000 crore in the next three years, Mathur said.
To invest Rs 300 cr in new furniture unit
Godrej is setting up a third facility to make ready to use furniture at Shirwal near Pune where it already has two existing plants. The expansion, which involves an expenditure of Rs 300 crore, will increase production capacity, mainly for hospital furniture, and help improve finish.
The expansion, he said, will help increase the turnover form this business, currently at Rs 900 crore, to Rs 3,000 crore in three years time.
To take on online sales, Godrej Interio is also working on putting up an omni channel for sales in a year’s time.