Godrej furniture arm to invest Rs 300 cr; aims to double revenues to Rs 10,000 cr by FY29

Mumbai, Sep 9 (PTI) Godrej Enterprise Group's furniture arm is aiming to invest Rs 300 crore in business expansion and technology, as it aims to more than double revenues to Rs 10,000 crore by FY29, officials said on Tuesday.

The privately-held 'Interio By Godrej', the second largest revenue contributor to the Rs 16,000-crore Godrej Enterprises Group (GEG), is also looking to up its market share in the organised furniture market to over 20 per cent from the present 15 per cent.

Stating that Interio is the biggest player in the organised furniture market and there is no clear second-ranked company, GEG's Executive Director Nyrika Holkar said the company is aiming to make premium design accessible to a wider set of people as part of its efforts.

Interio's business head Swapneel Nagarkar said it will invest Rs 100 crore each towards digital technologies essential for the omnichannel presence that it plans, store expansion to 1,500 by adding 500 more outlets and getting the right design elements over the next few years.

The Rs 300-crore investment is over and above Rs 350 crore of investments done in upgrading its manufacturing at five facilities across the country over the last few years, he said.

The company will close FY25 with a revenue of Rs 3,400 crore, which will go up to Rs 4,000 crore in the ongoing fiscal year, he said, adding that starting FY27, it has plans of more than doubling the revenues to Rs 10,000 crore by FY29.

This journey will also see a shift in the revenue pie, with the share of topline from the B2B business expected to come down to 55 per cent from the present 65 per cent, he said, adding that the B2C share will increase by 10 percentage points.

For this, it aims to accelerate growth to 25 per cent from the present 17 per cent, Nagarkar said, adding that even as the economy may be experiencing challenges around urban demand growth, the company's reliance on the premium segment and also a shift to the organised category from unorganised one will help drive volumes.

Holkar said the company, which unveiled a new brand identity on Tuesday, will have three new store categories, including a 20,000 sq ft flagship store in suburban Vikhroli, some spread over 7,000 sq ft and also smaller ones.

Over 60 per cent of the new store openings will be in tier-II cities, 30 per cent will be in tier-III cities and the rest will be in tier-I cities, Nagarkar said, adding that an online presence also helps in distribution as over 18,000 pincodes are covered.

Nagarakar said the company has also studied and experimented with furniture rentals offered by startups, but added that there is not a high demand for it, and it is also an asset-heavy model.

GEG is targeting to increase revenues to Rs 20,000 crore by FY29 from the present Rs 16,000 crore and added that the group does not plan to list any of its businesses.

The group, which had a profit of Rs 500 crore in FY25, typically does not borrow beyond the pretax profits, she said. PTI AA MR