 "Godrej Interio to open large-format stores, targets ₹10k cr revenue by FY29")
Interio by Godrej, the furniture brand from Godrej Enterprises Group, has put an ambitious expansion plan in place from opening large format stores and also expanding its smaller format stores.
It plans to open 20,000 square feet stores most of which will be in metro cities and the company plans to open 5,000 square feet stores in Tier II and Tier III cities. It also has placed a target of reaching revenues of ₹10,000 crore by the financial year 2029 (FY29). The revenue from Godrej Interio currently stands at ₹4,000 crore.
Nyrika Holkar, executive director at Godrej Enterprises Group, said that Interio by Godrej is the fastest growing segment among all its businesses which is currently growing at 16-17 per cent.
“We would like to open them within the city limits, the footprint of these stores may not be within the prime location in cities, but it will be within the city itself… We will have around four to five large box format stores, which will also be our flagship stores,” Swapneel Nagarkar, business head and executive vice president, Interio by Godrej, told Business Standard.
At the press conference, Nagarkar also said that its big box stores will also have cafes. He added that the mid-sized stores will be in the range of 50-60 stores across the country and will have four to five large stores in metros. It expects its total store count to reach 1,500 in the next three years.
Interio by Godrej enjoys the largest retail footprint across the country with 1000 retail stores and serves customers both online and offline.
Nagarkar also said that the company will also invest ₹100 crore over the next one year in its digital reach to improve its reach and customer experience. The company also allocated ₹100 crore to expand its stores and also refurbish its existing stores and this capital will be deployed over the next three years and it will invest another ₹ 100 crore towards new product development.
In manufacturing, the company has already invested ₹650-700 crore over the last five-six years, Nagarkar said.
Nagarkar explained that the company aims to straddle across the premium, mid and the economy segment with different product offerings. While talking about its major competitor in the market, he explained that the company will stick to furniture and it will focus on co-creating products and help its customers design their entire home which will help drive its growth in the future.
“The journey does not end at installing. What actually differentiates us very strongly also is our capability to provide the after sales service,” Nagarkar said and Holkar further explained, “The other aspect could also be in terms which include reupholstering services because furniture is a big ticket buy, and you don’t change it frequently. If one wants to give their homes a refresh, they won’t have to buy a whole new sofa, but just get it reupholstered.”
He added that its business-to-business (B2B) side, which is a larger contributor to its revenue (approximately 55 per cent) will also continue to grow for the company.