In Short:
Godrej Locks aims to increase market share from 30% to 50% in three years by offering new affordable products and reducing prices of existing locks. The company targets tier-2, 3, 4 cities, and towns. New locks are designed for rural-urban population needs. Investments focus on automation and new model design. The company plans to double its distribution to over 700 towns.
Godrej Locks Eyes Market Dominance with New Range of Affordable Products
Exciting news alert! The locks and security solutions powerhouse, Godrej Locks, is on a mission to supercharge its market share from 30 per cent to a whopping 50 per cent in just three years. How? Well, they’ve unleashed a brand new range of budget-friendly products and slashed prices on their existing ones. Talk about a game-changer!
Affordable Innovations
Shyam Motwani, the brain behind the operation as the business head for Godrej Locks & Architectural Fittings and Systems, spilled the tea on their latest launch. These new products are more than 50 per cent cheaper than the current locks, and they’ve managed to chop the prices of existing ones by a cool 7-8 per cent. It’s all about making top-notch security accessible to everyone!
Target: Market Dominance
So, the big question is, how will they achieve this ambitious goal? According to Motwani, it’s all about leveraging the new affordable range and the price cuts to conquer the market in just three years. From a modest 30 per cent to a solid 50 per cent stronghold, they’re ready to take on the challenge.
Rural-Urban Appeal
Wait, there’s more! These new locks aren’t just affordable; they’re tailor-made for the “rurban” population – bridging the gap between rural and urban needs without compromising on quality. It’s a win-win for everyone!
Expanding Horizons
With roots dating back to 1897, Godrej Locks is no stranger to the game. And now, they’re setting their sights on smaller cities, aiming to deepen their distribution network and reach every nook and cranny of the country.
Currently raking in a fifth of their revenue from “rurban” areas, the bulk still comes from the top eight cities in India. But fear not – plans are in motion to double their presence in tier-2, 3, and 4 cities, with a goal of being in over 700 towns or every district. Impressive, right?
Growth and Success
Despite their humble beginnings, Godrej Locks is a force to be reckoned with, boasting a turnover of ₹1,200 crore in FY24 – a remarkable feat that has doubled in just three years. Cheers to growth and prosperity!
Future Outlook
When asked about the capital needed for these expansion feats, Motwani remained tight-lipped on numbers but stressed the importance of continuous investment in the business. With a manufacturing unit in Goa, Godrej Locks is focusing on automation and designing new models to stay ahead of the curve.
Looking Ahead
The plan to reduce prices by 7-8 per cent involves reworking distribution commissions, with future cuts in maximum retail prices on the horizon. But hey, won’t that hurt margins? Not according to Motwani, who believes that the volume growth they’re targeting will make up for any losses. Smart move!
Bright Future
The locks market, currently a ₹6,700 crore industry, is set to skyrocket to ₹10,000 crore by 2027. And Godrej Locks isn’t just aiming to keep up – they’re eyeing a whopping 20 per cent growth in the coming years, leaving their competitors in the dust. It’s a bright future ahead for the lock masters!
