 "Japan's Sumitomo Forestry forms JV with Spacewood for manufacturing furniture")
Spacewood has formed an alliance with Sumitomo Forestry, a large forestry, housing and timber and building materials trading company based in Japan, for manufacturing furniture in India. As per the deal, Sumitomo Forestry will pick up 26 percent stake in Nagpur-based Spacewood for up to $14 million (about Rs 90 crore).
As a part of this alliance, Spacewood in association with Sumitomo Forestry Crest Co Ltd, a wholly-owned subsidiary of Sumitomo Forestry, will set up a new manufacturing facility for the production of pre hung doors. With the aim to expand the existing business from kitchen products and home furniture businesses to manufacturing of wooden interior and building materials, the company will now offer integrated and comprehensive home solution in building materials.
Through the alliance, Spacewood Furnishers aims to establish itself as a leading player in interior and building materials business in India and South Asia by bringing world class manufacturing facilities and full line of products. The company will also increase its retail footprint from existing 15 stores to approximately 50 stores offering such products to discerning Indian consumers.
Kirit Joshi, co- founder, Spacewood, said, “This association has brought significant opportunity of growth to Spacewood. As far as I know, this is the first FDI investment in our industry.” Home segment is currently dominated by carpenters. However, there is a major shift towards ready-made products, a category in which Spacewood is a major player with a pan-India distribution network and tie-ups with leading modern trade players such as Home town and e-commerce portals such as Pepperfry.com.
Vivek Deshpande, co-founder, Spacewood, added, “Modular wooden furniture is one of the fastest growing categories in furniture segment in India and Spacewood has a leadership position in the same. The company owned stores are present in major metros to cater to individual needs. Further, the company has also tied up with leading builders such as Tata Housing Ltd, Kolte Patil Developers Ltd, and IREO. The investment and technical collaboration from Sumitomo Forestry will help us leverage our position in the segment to become the largest furniture producer in India.”
Itaru Ozaki, general manager, Sumitomo Forestry, commented, “Spacewood and Sumitomo Forestry desire to contribute to the evolution of housing and enhancement of living environments in India through the introduction and adoption of new building materials and technology from Japan. India has become a very important strategic market for us and we will continue to invest and look for opportunities here.”
Sumitomo Forestry is mainly engaged in three segments - timber and building materials, housing, and overseas businesses. Timber and building materials segment purchases, manufactures, secondary processes and sells timber products and building materials. Housing segment constructs, sells, maintains and renovates detached houses and multi-unit residences, and undertakes exterior, landscape and greening works. Overseas businesses segment is engaged in the purchase, manufacture and sale of timber products and building materials overseas, as well as the contracted construction and sale of detached houses.
As a part of this alliance, Spacewood in association with Sumitomo Forestry Crest Co Ltd, a wholly-owned subsidiary of Sumitomo Forestry, will set up a new manufacturing facility for the production of pre hung doors. With the aim to expand the existing business from kitchen products and home furniture businesses to manufacturing of wooden interior and building materials, the company will now offer integrated and comprehensive home solution in building materials.
Through the alliance, Spacewood Furnishers aims to establish itself as a leading player in interior and building materials business in India and South Asia by bringing world class manufacturing facilities and full line of products. The company will also increase its retail footprint from existing 15 stores to approximately 50 stores offering such products to discerning Indian consumers.
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Vivek Deshpande, co-founder, Spacewood, added, “Modular wooden furniture is one of the fastest growing categories in furniture segment in India and Spacewood has a leadership position in the same. The company owned stores are present in major metros to cater to individual needs. Further, the company has also tied up with leading builders such as Tata Housing Ltd, Kolte Patil Developers Ltd, and IREO. The investment and technical collaboration from Sumitomo Forestry will help us leverage our position in the segment to become the largest furniture producer in India.”
Itaru Ozaki, general manager, Sumitomo Forestry, commented, “Spacewood and Sumitomo Forestry desire to contribute to the evolution of housing and enhancement of living environments in India through the introduction and adoption of new building materials and technology from Japan. India has become a very important strategic market for us and we will continue to invest and look for opportunities here.”
Sumitomo Forestry is mainly engaged in three segments - timber and building materials, housing, and overseas businesses. Timber and building materials segment purchases, manufactures, secondary processes and sells timber products and building materials. Housing segment constructs, sells, maintains and renovates detached houses and multi-unit residences, and undertakes exterior, landscape and greening works. Overseas businesses segment is engaged in the purchase, manufacture and sale of timber products and building materials overseas, as well as the contracted construction and sale of detached houses.