Godrej Security to invest Rs 100 cr on R&D in 4 yrs

Godrej Security Solutions, a division of Godrej & Boyce Manufacturing Company, plans to invest about Rs 100 crore on research and development (R&D) in the next four years, of which around Rs 25 crore would be spent in the next financial year.

"We are planning to invest around Rs 100 crore in R&D in next four years, out of which Rs 20-25 crore will be pumped in the next fiscal," Godrej Security Solutions Associate Vice President (Marketing and International Business) Mahernosh Pithawalla told PTI here today.

The security solutions provider, which posted a turnover of Rs 600 crore last fiscal, draws around 8% of its revenue from international business and the rest from domestic market.

Also, out of the three verticals of the company -- banking solution, home security and institutional security -- it draws around 60-70% of the revenue from banking solutions segment.

"We have around 62% market share in the banking sector and it has been growing by over 40% per annum," he said, adding that of late there has also been business traction in home security and institutional security segments.

Referring to capacity expansion, he said the company is mulling to establish a greenfield unit to increase the manufacturing capacity.

"We normally come up with 20 new products a year and this year will also see that much new products," Pithawala said.

About funding for its proposed expenditure on expansion and R&D, he said it would be out of internal accruals.

He, however, declined to reveal the profit margin for the security business citing company policy.

"Our margins are not under pressure and we have not seen any de-growth in the business due to slowing down of the economy," he said.