Locks and security solutions company Godrej Locks has said it aims to increase market share from 30 per cent to 50 per cent in three years, riding on a new range of affordable products and reduced prices of existing ones.

Shyam Motwani, business head for Godrej Locks & Architectural Fittings and Systems, said the company's newly-launched products are over 50 per cent affordable than the existing locks, while efforts have been undertaken to make the existing locks cheaper by 7-8 per cent.

The company will rely on new affordable range and price cuts in the existing locks to achieve the objective of having the dominant market share in around three years, Motwani told PTI.

The target is to grab 50 per cent market in the segment from the current 30 per cent, Motwani said, adding that the company sees a massive opportunity for its products in the tier-2,3, 4 cities and towns.

He further said the newly-launched locks have been designed and developed in-house, keeping in mind the needs and aspirations of ”rurban” (rural-urban) population without compromising on the products’ effectiveness.

Founded in 1897, the company which has become a household name for its reliable products is looking at deepening its distribution in smaller cities.

Motwani said the "rurban" areas account for just over a fifth of the company's revenues at present, while the larger chunk comes from top eight cities of India.

The company's reach is limited to over 340 towns in tier-2, 3 and 4 cities and plans are afoot to double it to over 700 towns or having a presence in every district, he said.

The company, a part of Godrej and Boyce, is profitable and has registered a turnover of ₹1,200 crore in FY24, he said, adding that it has doubled in the last three years.

When asked about the capital expenditure needed for expansion efforts, Motwani did not give any specific figure but said that investment efforts are a continuing aspect for the business.

Investments by the company, which has a manufacturing unit in Goa, are focused towards automation efforts as well as design of new models.

The 7-8 per cent cut in prices of existing products is being ensured by reworking the commissions paid to the distribution network and will be followed up eventually with a cut in the maximum retail prices, he said.

To a query on whether margins will have to be compromised, he said that the volume growth which the company is targeting will make up for it.

The locks market, which is around ₹6,700 crore opportunity, will increase to ₹10,000 crore by 2027, Motwani said, adding that while the overall market grows at 14 per cent, the company is targeting for an over 20 per cent growth.

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