Godrej Locking Solutions eyes Rs 1000 crore revenue by FY22

Godrej Locking Solutions and Systems, part of Godrej & Boyce, is eyeing Rs 1000 crore revenue by FY22, betting on premiumization and its entry into new categories, especially kitchen fittings.

This year, the company aims to clock a revenue of Rs 720-750 crore from over Rs 600 crore in FY 18. "If we continue to maintain a compounded annual growth rate (CAGR) of 18 percent, going forward to FY 21-22, I think we should be able to have a four-digit revenue by then, which is Rs 1,000 crore plus," Godrej Locking Solutions and Systems EVP and business head Shyam Motwani told PTI.

He expects architectural fittings and premiumization of some segments of the locks category to be the growth drivers. In architectural fittings and systems, which had a soft launch in FY13, the company has identified kitchen fittings as a growth engine, which at present accounts for close to 30 percent of the business.

Within these segments, kitchen fittings are seen as a growth driver. "We plan to introduce new products in the course of this financial year and next financial year.

This will accelerate the contribution of that (architectural fittings) category to our overall revenues and this is what is going to drive us to the four-digit revenue plans in the next two to three years," he said. He added that the company aspires architectural fittings and solutions to be 50 percent of business in the next 2-3 years and wants kitchen fittings to be a fifth of architectural fittings and solutions.

"In FY19, if 30 percent is from architectural fittings, 10 percent of that will come from kitchen fittings which will double to 20 percent in next two to three years.

A CAGR of upwards of 50 percent for kitchen fittings will lead to Rs 100 crore target in 2-3 years. Almost 4-5 times the size that the company is in kitchen fittings today," he said. The total locks market is estimated to be Rs 5,000 crore, of which organized segment is 40 percent.

The company enjoys a market share of 45 percent in the organized segment. He indicated premiumization of locks will help the segment grow at over two times the market. "We have a mindshare of 90 percent but the market share of 45-50 percent. We are trying to narrow the gap between the two and that is going to be driven by premiumization, he said.

The company, which contributes 7 percent to Godrej and Boyce's revenue, currently exports to 27 countries and expects its share from overseas market to increase and is also planning to enter in the architectural fittings and solutions segment in these markets. Exports contribute to around 5 percent of revenue.

"We are looking at the double-digit contribution from exports as well. We will look at newer geographies, newer markets, and relevant products for those markets," he said.

(With inputs from agencies.)