Sumitomo Forestry Co. of Japan has invested $14 million (approximately Rs.90 crore) to pick up a 26 per cent stake in Spacewood Furnitures, a leading furniture company, which will deploy the capital to expand its business. “This is the first Foreign Direct Investment (FDI) in the furniture segment in India and we are proud to announce this.
The proceeds will be utilised to expand our business and set up more stores in India,” said Kirit Joshi, CEO and Co- founder, Spacewood Furnitures . Sumitomo Forestry has decided to place one of its nominees on the board of Spacewood. Besides this equity investment, Sumitomo Forestry has also entered into a technical collaboration with Spacewood, which will set up a pre-hung door manufacturing unit in Nagpur in association with Sumitomo’s 100 per cent subsidiary Sumitomo Forestry Crest Co.
Spacewood, which plans to expand the existing businesses of kitchen products, home furniture, manufacturing of wooden interior and building materials, will now offer integrated and comprehensive home solution in building materials, Mr. Joshi said.
Sumitomo Forestry is a large forestry, housing and timber and building materials trading company in Japan.
“Through the alliance, Spacewood Furnishers will establish itself as the leader in interior and building materials business in India and South Asia by will be bringing world class manufacturing facilities and full line of products,” he said.
He said the company would increase its retail footprint from existing 15 stores to 50 stores in 30 months offering its products to customers.
Itaru Ozaki, General Manager, Sumitomo Forestry, said, “India has become a very important strategic market for us and we will continue to invest and look for opportunities here.”
