Telugu States key markets for furniture retail business

Hyderabad: Godrej Interio, the furniture business arm of Godrej & Boyce Mfg Co Ltd, is betting big on Andhra Pradesh and Telangana markets as the 'Telugu states are key markets for furniture retail business in the country'.

"Andhra Pradesh and Telangana are very important markets for furniture business, clocking a healthy growth year after year. We are opening new stores and roping in new dealers in both the Telugu states as they are key markets for Godrej Interio as well. They account for 14 per cent of our top line," Subodh Kumar Mehta, Sr Vice President- Marketing & Sales B2C, Godrej Interio, told The Hans India.

In Telangana, Hyderabad continues to grow at faster pace as a furniture market. The furniture retail arm of diversified Godrej group has a good presence in the City of Pearls. "We operate seven large-format Godrej Interio stores in the city. In addition, we have 15 dealers who cater to other parts of Telangana," he said. The company plans to open four new Interio stores and rope in five more dealers in the State. Andhra Pradesh is also a growing market for the furniture business and the company has a good presence there as well. "We have a long-time presence in Visakhapatnam, good presence in Vijayawada and other cities. Overall, we have four stores and seven dealers there," he said.

The company is looking to add two more stores and five more dealers in Andhra Pradesh. "Our stores spread over 4,000-7,000 sft. The average investment on each store ranges from Rs 40 lakh to Rs 50 lakh," he maintained.

According to him, sofa sets, and beds were fast-moving furniture products in both states. "People want to buy good sofa and along with with it a coffee table and television set unit. Beds, dressing table and wardrobes are other fast-selling products," he added. Godrej Interio manufactures furniture at its own plants.

For Godrej, wardrobes are the fast-selling products. "Godrej is known for wardrobes. We offer many models, including wooden wardrobes. We offer customised wardrobes as well," he explained.

Asked about prices being higher for Godrej products compared to locally-made furniture, he said: "Of course, prices are little higher. But customers will have to look at long-term perspectives and service availability. People who buy Godrej products will have complete peace of mind as service is available". On typical expenditure on furniture for a bedroom, he said it would vary from as low as Rs 60,000 to Rs 2.5 lakh. "The products include bed, wardrobe, dressing table and a side table. The expenditure depends on the type of furniture one wants," he explained, adding that customers would invariably prefer coordinated sets.

Mehta said plans were afoot to launch smart mattress in two months or so. "Health mattress market is very large now. For us, health mattress accounts for almost 65 per cent of our mattress sales. The sales growth in this space is around 15 to 20 per cent," he maintained. Rs 3,000-crore Godrej Interior supplies furniture to offices and corporates besides selling through retail outlets. "Our B2B sales account for 55 per cent while the remaining 45 percent of'Telugu States key mkts for furniture retail biz' sales come through retail channels. The retail sales are growing at 20 per cent annually," he said.

We are roping in new dealers in Andhra Pradesh and Telangana as they are key markets for Godrej Interio. They account for 14 per cent of our total sales

– Subodh Kumar Mehta, Sr VP, Godrej Interio