 "Rupee")
Godrej Locking Solutions and Systems, part of Godrej & Boyce, is eyeing Rs 10 billion revenue by FY22, betting on premiumisation and its entry into new categories, especially kitchen fittings.
This year, the company aims to clock a revenue of Rs 7.2-7.5 billion from over Rs 6 billion in FY 18.
"If we continue to maintain a compounded annual growth rate (CAGR) of 18 per cent, going forward to FY 21-22, I think we should be able to have a four-digit revenue by then, which is Rs 10 billion plus," Godrej Locking Solutions and Systems EVP and business head Shyam Motwani said.
He expects architectural fittings and premiumisation 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 per cent of the business.
Within these segments, kitchen fittings is seen as a growth driver.
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"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 per cent of business in next 2-3 years and wants kitchen fittings to be a fifth of architectural fittings and solutions.
"In FY19, if 30 per cent is from architectural fittings, 10 per cent of that will come from kitchen fittings which will double to 20 per cent in next two to three years. A CAGR of upwards of 50 per cent for kitchen fittings will lead to Rs 1 billion 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 50 billion, of which organised segment is 40 per cent. The company enjoys a market share of 45 per cent in the organised segment.
He indicated premiumisation of locks will help the segment grow at over two times the market.
"We have a mindshare of 90 per cent but market share of 45-50 per cent. We are trying to narrow the gap between the two and that is going to be driven by premiumisation, he said.
The company, which contributes 7 per cent 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 per cent of revenue. "We are looking at double digit contribution from exports as well. We will look at newer geographies, newer markets and relevant products for those markets," he said.
