Companies

JSW Living ventures into steel furniture business

Our Bureau Mumbai | Updated on April 04, 2019

Plans to invest up to ₹300 crore next five years

JSW Living, part of the promoter group company, has ventured into steel furniture business with the launch of Forma. The business is spearheaded by Tarini Jindal Handa, daughter of Group’s Chairman Sajjan Jindal.

The company plans to invest ₹250-300 crore over next five years. It has set a sales target of ₹50 crore in the first year.

Initially, JSW Living has launched products in the largest steel furniture markets in west and southern India and plan to tap the rest of India next year.

Bedraj Tripathy, CEO, Forma, said the company has adopted asset light model by outsourcing production to two entities in Nagpur and Bhiwandi, on the outskirts of Mumbai and has 28 employees which it plans to increase it to 50 in next one year.

The company’s products, which starts at ₹19,000, are available at 62 outlets, which will be enhanced to 400 in three years, said Tripathy, who has joined the venture from Godrej.

The furniture market in India is estimated at about ₹1.30 lakh crore and is growing at a compounded annual growth rate of 11 per cent over last 5 years.

The organised sector, which accounts for about 16 per cent of the entire furniture market, is extremely fragmented with over 50 key players and JSW is targeting Forma to be among the top 5 furniture brands in India, said Handa.

Though Forma will be available online, Tripathy said the company does not believe in giving discount to gain market share as the margin in this business is thin after paying the distribution commission of 20-39 per cent depending on products.

Buyback offer

The company also plans to extend buyback offer after gaining substantial market.

Speaking on the venture, Parth Jindal, an heir of JSW Group, said the largest player in the steel furniture market Godrej has sales turnover of ₹900 crore and share of organised players expected to touch 30 by 2022.

Published on April 04, 2019

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