Godrej Security Solutions, a division of Godrej & Boyce Co. Ltd., is planning to double its outlets in tier-II and III cities to double its growth, said a top official.
“During the current year, we are planning to enhance our presence in tier-II and tier-III cities,” said Mehernosh Pithawalla, vice president, and global head – marketing, sales and innovation, Godrej Security Solutions. “We have 110 direct distributors across the country and we will increase it to 250.” Though Godrej Security Solutions has higher market share in tier-II and III cities for home safes and low market share for home electronics, it has less number of distributors in tier-III cities. “The idea is to create awareness to increase our penetration in these markets,” he said.
Demonetisation hit
“Last year, our growth in home safes was low (10-15%) due to demonetisation. This fiscal we are targeting 25% growth. It would be fueled by spate of new and innovative products, lot of investments, product awareness and roll-out of a series of home safes and luxury safes and intelligent products among others,” he said. The firm has planned a capital expenditure of ₹15 crore for product investment and ₹20 crore for marketing.
Last year, the division recorded a revenue of ₹220 crore and with a 20% growth, it was aiming at ₹270 crore.
Asked whether the demand for home safes was on the decline due to digitalisation, he admitted that though the quantum of cash kept in homes had come down, people used safes for storing gold, jewellery, documents and other valuables.
Mr. Pithawalla also unveiled the country’s first home security experience zone in Chennai. The experience zone caters to electronic home security solutions, home safes, wifi based home security solutions and fire resistant and commercial safes. Products ranging from ₹4,000 to ₹10 lakh are being displayed.
“We are planning to open 10 to 15 shops in a year’s time across the metros. We hope the Chennai experience zone would fetch us sales of ₹6 crore in the first year,” he said.
