In a bid to keep pace with the fast changing retail environment, Godrej & Boyce Manufacturing Company Ltd has appointed a Delhi-based consultancy, Interim Business Associates to streamline the business processes of its newly formed retail division.
As part of its renewed focus, Godrej’s retail division has also chalked out an aggressive expansion plan of its company-run showrooms which market a range of products manufactured by the company, including refrigerators, washing machines, air-conditioners, furniture and security equipment.
“We plan to open 10 more showrooms in this fiscal and another 7 in the next financial year. By the end of fiscal 2005, we will take the total number of showrooms to 50,” Godrej & Boyce vice-president BN Doongaji told FE.
Godrej retailing division was formed in April 2003 primarily to bring the entire company-run showrooms under one division and to showcase “the new face of Godrej”. According to Mr Doongaji, over the years, Godrej & Boyce has changed its product range to make it more contemporary and modern. While it was always strong in the office and industrial segments, in the last two or three years, the company has made a strong foray into the home segment.
Towards that, the company is even considering retailing non-Godrej products like furnishings and accessories in the ‘home’ segment from its outlets. “The idea is to leverage the infrastructure and add on to the product portfolio,” Mr Doongaji said.
Godrej retail division already has 33 showrooms spread out in cities like Chandigarh, Kanpur, Lucknow, Jaipur, Mumbai, Pune, Chennai, Bangalore and Hyderabad sprawling over 85,000 sq ft. The thrust in the current year would be in cities like Mumbai, Delhi, Bangalore, Chennai, Hyderabad and Pune, he added.
“We are trying to fill the gaps in our coverage by opening stores in say Noida and Gurgaon,” he said.
The company plans to invest Rs 5 crore over the next two years to revamp these outlets.
The division hopes to achieve a sales turnover of Rs 100 crore in the next two years from Rs 42 crore now.
The Rs 1,900 crore closely-held Godrej Group company currently has several divisions including machine tools, security systems, furniture and construction.