"Godrej & Boyce Plans ₹40 Crore Investment Over Three Years for Distribution Expansion"

Godrej & Boyce, a prominent player in interior solutions, furniture, appliances, and locks, has announced plans to invest approximately ₹40 crore over the next three years to expand its distribution footprint in tier-II and tier-III cities.

According to a senior official, this investment will lead to a doubling of the company's footprint to over 400 towns by the fiscal year 2026-27.

The company spokesperson revealed that Godrej & Boyce intends to allocate approximately ₹10-15 crore annually for store expansion and renovation over the next three years. This investment is part of the company's strategy to achieve a 15-20% annual growth in topline revenue. The expansion of stores is seen as one of several initiatives to realize this growth target.

When questioned about the expansion approach, the spokesperson clarified that the expansion activities will be both company-driven and channel-driven, indicating a hybrid approach involving both company-owned and franchise stores.

As per the company's website, Godrej & Boyce reported revenues of ₹14,796 crore in the fiscal year 2022-23 and operates across more than ten industries, including engineering solutions and manufacturing consumer appliances, furniture, locks, and security solutions.

Anil G Verma, Executive Director and Chief Executive of Godrej & Boyce, emphasized that the company's vision extends beyond mere expansion. He highlighted the commitment to crafting market-specific product portfolios tailored to meet region-specific consumer needs.

The strategies to be pursued include bolstering retail presence, innovating customized products, and establishing a robust and sustainable supply chain to capitalize on market potential.

HBL