Godrej Locks expansion plans: Godrej Locks, a locks and security solutions manufacturer has announced plans to increase its market share from 30 per cent to 50 per cent within three years. The strategy hinges on the launch of a new range of affordable products and the implementation of price reductions on existing offerings.

Shyam Motwani, the business head for Godrej Locks and Architectural Systems, revealed that the newly launched products are priced more than 50 per cent lower than their predecessors. Additionally, efforts have been made to decrease the prices of existing locks by 7-8 per cent. Motwani outlined that leveraging these initiatives, coupled with the launch of affordable options, is key to achieving market dominance in the specified timeframe.

The company's objective is to capture 50 per cent of the market share in its segment, up from the current 30 per cent. Motwani highlighted the substantial potential in tier-2, 3, and 4 cities and towns for their products. He mentioned that the newly-launched locks are tailored to meet the needs of the "rurban" population, combining affordability with effectiveness.

Established in 1897, Godrej Locks aims to expand its distribution network in smaller cities. Currently, "rurban" areas contribute just over 20 per cent of the company's revenues, with the majority coming from India's top eight cities. Plans are underway to expand the company's reach to over 700 towns or achieve a presence in every district, doubling its current coverage.

The company, a subsidiary of Godrej and Boyce, reported a turnover of Rs 1,200 crore in FY24, marking a strong growth over the past three years. Motwani highlighted ongoing investment efforts, particularly in automation and new product design, to support expansion endeavours.

Efforts to reduce prices of existing products by 7-8 per cent involve revisiting distribution network commissions, which will eventually lead to a reduction in maximum retail prices. Motwani affirmed that despite potential margin adjustments, the anticipated volume growth will compensate for it.

Motwani projected a substantial growth in the locks market, estimating it to reach Rs 10,000 crore by 2027 from the current Rs 6,700 crore. While the overall market is expected to grow at 14 per cent, the company aims for over 20 per cent growth. 

(With PTI inputs)