Godrej Locks aims double-digit growth amid changing market dynamics

Godrej Locks & Architectural Fittings and Systems, a division of Godrej & Boyce, has set its sights on substantial growth of achieving an 8-10 per cent increase in its topline, which is double the sector's expected growth rate, a senior company official said on Monday.

Retaining an optimistic outlook, the country's largest lock maker noted that the urban market has rebounded to pre-COVID growth levels, surpassing its previous performance.

However, the rural market presents a more challenging scenario, with a projected two-year timeline for a full recovery, given the larger impact of the COVID-19 pandemic in rural areas, Shyam Motwani, Business Head of Godrej Locks.

He said rural and semi-urban areas account for 25 per cent of their business, while the remaining 75 per cent is urban centric.

In an effort to embrace evolving consumer preferences, the company is focusing on digital technology locks, which currently constitute only 3 per cent of their revenue but are doubling in size every year.

The company anticipates reaching a revenue of about Rs 1,200 crore in the current fiscal against Rs 1,100 crore in FY'23. Locks contribute 60 per cent to this revenue, with the architectural fitting business comprising the remaining 40 per cent.

Motwani discusses the challenges posed by commodity price fluctuations, stating that it may take an additional 2-3 years for margins to return to pre-COVID levels, given the recent super cycle in commodity pricing.

He said Kolkata is a pivotal market and the company aims dat expanding its presence in the city, as well as in the urban and rural areas of Rajasthan.

To achieve this, the company will focus on Tier 3 and 4 towns through a "fit for the market" product strategy, with the goal of achieving a 20 per cent growth over the previous year.

Furthermore, as part of their annual campaign 'Har Ghar Surakshit,' Godrej Locks celebrates Home Safety Day in November 15.

This year, the company introduced 'My Home Safety Quotient,' an online assessment tool allowing consumers to evaluate the safety of their homes through a quick questionnaire.

In 2022, the brand launched the 'Live Safe, Live Free Programme,' conducting free home safety assessments across 52 locations in India. This initiative reached over 17,500 households.