Godrej Interio aims to ride e-commerce wave, targets 18-20% growth

Godrej Interio, the furniture brand under Godrej Enterprises Group, seeks to leverage the growth of electronic commerce (ecommerce) in India to improve customer experience, expand reach, and bolster its sales, said a top company executive.

 

The furniture major eyes an 18-20 per cent overall topline growth in the coming years against the current growth of 12-13 per cent. 

“We are currently in the process of revamping our entire website. We are going to do a lot of personalisation digitally to improve customer experience and scale up our ecommerce presence through our own website and ecommerce platforms like Amazon and Flipkart,” said Swapneel Nagarkar, executive president and business head, Godrej Interio.

 

The company looks to double its sales via e-commerce to 10 per cent of its total sales in the upcoming five years. Its revenue for the financial year 2025 (FY25) is estimated to be around Rs 3,500 crore, with ecommerce accounting for Rs 100 crore.

 

The firm’s parent company has planned an investment of Rs 100 crore for its digital revamp, customer experience, and sales growth through ecommerce for the next year.

 

Professional services major Deloitte has projected India’s e-commerce market to grow at a compound annual growth rate (CAGR) of 21 per cent to reach $325 billion by 2030. India’s quick commerce (qcommerce) market is estimated to grow up to $40 billion by 2030 at a CAGR of 45 per cent.

 

Godrej Interio also has plans to leverage the qcommerce boom but doesn’t see “much of furniture sales happening through quick commerce.”

 

“We are in the process of listing some of our products, like standard cupboards, on qcommerce platforms. Interest is being shown by qcommerce companies,” Nagarkar said.

 

The firm wants to enhance its reach to 19,000 pin codes from the current 17,200 via ecommerce. It is also planning to add about 50-60 showrooms and 250 retail outlets next year.

 

Amid its expansion plans, the company doesn’t have any immediate fundraising plans. “There is enough and more funding for our business from the parent. It can take care of our requirements,” said Nagarkar.

 

The company’s business-to-business (B2B) segment accounts for 70 per cent share of its total revenue through sales, while the rest belongs to the business-to-consumer (B2C) section.

 

“Our B2C portfolio is going to grow by 12-13 per cent this year, despite the market growing at hardly 3-4 per cent, specifically the B2C part,” Nagarkar said.

 

“The plan is to not have more manufacturing units because already Rs 300 crore has been invested throughout the last 4 to 5 years, and now the investment is just about to complete. But we want to scale up and have more of our own showrooms and franchisee showrooms. That is where the more investments are going,” said Nagarkar.

 

Currently, the company has seven manufacturing units - three in Khalapur near Mumbai, two near Pune, and two in Uttarakhand.  For any slowdown in real estate, the firm is banking on its innovative products, reach, and diversified portfolio featuring homes, offices, hospitals, educational institutions, and public infrastructure like railway stations and airports.

 

“We continue to feel confident about our growth despite the anticipated slowdown in real estate because of the innovations which we have. The market also is large, and it is anyway shifting towards branded players,” said Nagarkar.

 

According to Statista market insights, the furniture market in India is projected to generate a revenue of $6.19 billion in 2025. The market is expected to grow at a CAGR of 6.04 per cent from 2025 to 2029.