Godrej & Boyce eyes Rs 10,000-cr turnover in FY16

Company to scout for acquisitions to fill skill gaps; proposes to expand in-house manufacturing capacity with the aim of converting India operations into an export hub

Manufacturing major Godrej & Boyce is eyeing a turnover of Rs 10,000 crore this financial year, as a revival in sentiment is expected to bolster its business.

The bulk of its revenue comes from appliances, furniture and security solutions. Jamshyd Godrej (pictured), 66, chairman & managing director, told Business Standard they’d continue to invest in these areas, notably in enhancing design and innovation capabilities. “We have just set up a design and innovation lab in Mumbai. It is a large one, intended to give us the necessary impetus in this area,” he said.

The city-based company will scout for acquisitions to fill skill gaps and proposes to expand in-house manufacturing capacity, with the aim of converting its India operations into an export hub. “We are putting up a whole new complex in a place called Khalapur, near Khopoli, in Maharashtra. We will be setting up 10-15 factories in that complex for our various businesses. This will effectively increase the number of factories we have from the current 30,” said Godrej.

The maker of consumer durables such as cupboards and locks, as well as heavy engineering goods, currently exports 15 per cent of what it produces. “We can certainly take this number up, given the potential we see in export markets. Locks, latches, safes, fork-lift trucks and storage equipment are some examples where more export is possible. We are working on this aggressively,” said Godrej, who also champions the cause of manufacturing at the Confederation of Indian Industry.

Currently the company spends Rs 200 crore annually on capital investment. This could rise, as it plans to use opportunities from the government's 'Make in India’ initiative. Defence & aerospace is one such area where it is thinking of raising investment. “We have the capability and capacity (here). What we have to do is improve our processes to meet the requirements of the government,” said Godrej.

The company manufactures missile systems, including key components and parts for the Brahmos missile and launcher.

It also provides liquid propulsion engines, cryogenic engines and satellite booster systems for the Indian Space Research Organisation.

The company is also expected to take advantage of the manufacturing incentives for consumer durables and electronics. Already, the appliances wing of Godrej & Boyce manufactures much of its refrigerators and washing machines in the country. Godrej says government focus on infrastructure will help entities like his to commit further investment for local manufacturing.