JSW Living, part of the JSW Group has forayed into the steel furniture segment with brand Forma, is eyeing a revenue of ₹ 200 crore in next two years and ₹ 1,000 crore by FY’25.

The group said it will be pumping in approximately ₹ 250 crore in five years in Forma.

Currently, we are looking at residential furniture and in the future we would look at office furniture space, the new entity’s managing director Tarini Jindal Handa told reporters here.

The company aims to be EBITDA positive in the first year, she said.

We are targeting revenue of ₹ 200 crore in the next two years in this business and then grow from there and challenge Godrej in the steel furniture business, JSW Living director Parth Jindal said, while noting that Godrej does a business of around ₹ 800-900 crore in steel furniture segment.

Jindal hoped the share of the organised segment would increase to 30 per cent by 2022 and 40 per cent by 2025.

He added that it will be an asset light model as the company will be procuring steel from JSW Steel and the vendors would be converting into furniture.

The real investment is in product development, R&D, and just in distribution. Everything else is an asset light model. It is actually converting steel into furniture, without putting up our manufacturing facilities to start with, he said.

He pointed out that the per capita consumption of steel is very low in India at 68 kg per person while the global average is 200 kg per person and China is at 440 kg per person.

JSW Living will focus initially on the home furniture segment, which accounts for almost 65 percent of the total furniture sales in the country.

The furniture market is estimated to be ₹ 1,32,000 crore of which the organised market is 16 percent.

 

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