India’s top security solutions company Godrej Security Solutions (GSS) plans to invest Rs 100 crore on research & development (R&D) and branding in the next 2 years.
Besides, the Godrej Group entity is working on a roadmap to expand retail footprint in India, especially tier II and III markets.
“We have chalked out a plan to invest about Rs 100 crore in R&D and marketing initiatives, of which the bulk would be pumped into new product development,” GSS vice president and global head (marketing, sales and innovation), Mehernosh Pithawalla, told Business Standard here today.
At the same time, the company is looking to expand its pan-India retail touch points from 8,000 at present to 10,000 by the end of current fiscal. In Uttar Pradesh, GSS will augment its retail network from 200 to 300 by March 2020, Pithawalla said.
GSS is further eyeing greater traction from e-commerce, which makes up about seven per cent of its sales at present. “In coming years, we expect it to comprise 10-15% of our total revenues,” Pithawalla said.
The company has recently launched an e-commerce portal (www.godrejsecure.com) as part of its ‘omnichannel’ strategy to help customers to review and purchase home security solutions online, he added.
GSS claims almost 80 per cent share in the domestic security solutions market, which is pegged at Rs 800 crore, including both home and office/bank security segments. He was in town to launch Godrej’s new range of home security products.
“Although India is among the global top-6 home security solutions markets, yet the low penetration level of seven per cent provides huge potential to grow and penetrate further,” he added. The US, Italy, Germany and Thailand are the other top markets in this segment.
Meanwhile, GSS is aiming at 10 per growth this year, apart from gaining a greater export market share.
“Currently, exports contribute to about Rs 65 crore of our turnover from the key geographies of Europe, Africa and SAARC. We expect the export pie to grow by almost 40 per cent this financial year, with a large chunk coming from Africa,” Pithawalla said.
The company runs a captive manufacturing plant in Mumbai with an installed capacity of 300,000 units a year, he said, adding there was ample scope for augmenting the capacity on market demand.
“UP is among our prominent markets and is projected to witness high rate of adoption of home security solutions with an estimated business of Rs 10 crore this fiscal,” he added.