Godrej & Boyce eyes Rs 100 cr turnover from retail business

Godrej & Boyce Manufacturing Company, is targeting a turnover of Rs 100 crore from its retailing division by fiscal 2008.

The division, which posted a turnover of Rs 42 crore in the previous fiscal, is eyeing a larger share of the home furnishings and appliances market by promoting company-run showrooms and using its network of dealers and franchisees.

"The Godrej retailing division (GRD) was set up on April 1, 2003. In the last two years, we have set up 36 showrooms across the country. These will be increased to 50 over the next two years," said B N Doongaji, vice president and business head of the retailing division, Godrej & Boyce Manufacturing Company.

He was in Ahmedabad on Tuesday at the inauguration of an exclusive retail outlet. The 6200 square feet showroom at APM Shopping Mall in the Satellite area of the city was inaugurated by billiards player Geet Sethi.

The new retail showroom will have the entire range of products of Godrej & Boyce. This will include refrigerators, washing machines, air conditioners, home and office furniture, locks and security equipment and the recently introduced range of bedroom sets, sofa sets and dining sets.

"The dealers and distributors will always have a major role to play in our sales. They sell about four times more than the exclusive outlets. We plan to open another exclusive retail showroom at Surat in the coming fiscal," Doongaji said.

The home furnishings segment, which includes cupboards, continues to be the largest selling division within the company.

It accounts for about 50 per cent of the total sales of Godrej & Boyce. This is followed by the security equipment division, which accounts for about 15 per cent of the company's sales.

Meanwhile, Godrej & Boyce has tied up with visual merchandiser Manu Mansheet for providing a unique look to each Godrej exclusive retail showroom. The company has earmarked Rs five crore for giving the showrooms a colourful and lively ambience.