Generation-next, which has taken charge at the $13-billion Sajjan Jindal-led JSW Group, will look at diversification initiatives of the steel-to-energy conglomerate.
While Mr. Jindal’s son Parth Jindal is looking to expand the cement business to 30 million tonnes per annum (mtpa) to be among top five cement players in country, daughter Tarini Jindal Handa is guiding the group’s diversification into consumer-facing businesses.
Under Ms. Handa’s leadership, JSW forayed into India’s fast-growing $19-billion furniture market with the launch of its brand, Forma. The aim is to figure among the top five furniture brands in India.
Growth potential
The launch of Forma enables the conglomerate to capitalise on the immense growth potential of India’s furniture market which had been recording CAGR of 11% in last five years.
Forma has been launched as a brand of JSW Living Pvt. Ltd. and the company aims to be present across the value chain of furniture.
“We are learning and there is an immense distance to travel,” Ms. Handa told The Hindu.
“We have started in a small way with a strong belief to help India with newer products and solutions. We are investing ₹250 crore aiming at revenue of ₹1,000 crore in the next five years,” she said.
There is a strong focus on sustainability and durability,to deliver good designs to a larger number of users. Forma has been developed as a relevant product portfolio for the Indian consumer based on extensive market research, JSW Living said in a statement.
“We are working with our own team as well as designers — both domestic and international — to develop unique designs. At Forma, we will take good designs to larger sections of our society in India. Initially, we will capitalise on JSW’s marketing and distribution synergies through steel and cement to provide larger depth and scale to the furniture business.
“By 2023, we will have our own Forma retail outlets, which is expected to be the tipping point for the growth of JSW Group’s furniture business,” she added.
The organised sector, which accounts for about 16% of the entire furniture market, is extremely fragmented with more than 50 key players. JSW Group’s Forma brand aims to be a significant disruptor in the Indian furniture market with a focus on sustainable material, unique product portfolio, user experience and market penetration.
While the JSW group is looking to diversify beyond steel and energy, to cement, ports, paints and furniture segments. JSW has it has, however, given up on its plans to foray into the electric vehicles space citing higher than anticipated uncertainties associated with the EV business.
