Godrej Locks is looking to tap the real estate sector, hotels, hospitals in India, while expanding its reach in international markets simultaneously.
Godrej Locking Solutions and Systems expects immense growth in the B2B and business to government (B2G) segments to help in achieving its revenue target of Rs 1,000 crore by FY22.
The company dominates the B2C segment in safety products and is focusing on the B2B and B2G technology spaces to strengthen its position. It is looking to tap real estate, hotels and hospitals in India while simultaneously expanding its reach in international markets.
As far as the B2G segment is concerned, it has been providing locks to government organisations and will further extend its advanced locking solutions to them.
Executive Vice President and Business Head at Godrej Locking Solutions and Systems, Shyam Motwani, told Moneycontrol that architectural fittings and systems are an adjacent category that the company forayed into six years ago and achieved tremendous success. “Key growth drivers for our revenue plan until 2022 would be glass architectural fittings and kitchen fittings. Urban homes are placing a lot of emphasis on design and a smart kitchen is emerging as the top trend in India."
“Godrej Locks is focussing on making kitchens smart and our internal research shows that products available in the market, especially those supplied by international brands are not apt for Indian kitchens.”
The kitchen fittings market is growing at a compounded annual growth rate (CAGR) of 20-30 percent, the EVP said and added, “We expect Godrej products in this segment to grow at 40-50 percent and for FY19 we're expecting Rs 20 crore in revenue from the kitchens business.”
Over the next three years, the company plans to increase revenue in kitchen fittings to Rs 100 crore, Motwani said.
Godrej Locks is enhancing its product range in the glass architectural fittings segment as well. "Real estate developers in tier one and two cities -- apart from Metros — are using a lot of glass in designing homes, especially the use of glass doors is increasing. There is a lot of opportunity in commercial real estate as far as glass facades and glass fittings are concerned, and we’re offering a host of products for the B2B and B2C segments."
"This way we'll cash on the market and tap the commercial real estate sector, with the use of our electronic solutions made for glass doors."Overall, architectural fittings and systems would contribute around 50 percent to revenues from the present 30 percent, which translates to around Rs 500 crore by FY22.