Manufacturing major Godrej & Boyce will look at acquisitions and collaborations to increase revenues 10-fold in the next 10 years. The Rs 10,000-crore major has set the ball rolling, acquiring a majority stake in design start-up India Circus on Tuesday, which is expected to strengthen its presence in the lifestyle andhome decor vertical. This segment is one of the numerous consumer-facing businesses, the group will focus on as it gets future-ready. “India Circus is an online-led home decor start-up, which has been around for two or three years. There are synergies that the acquisition brings to the table. We see it as a complement to our existing lifestyle portfolio, which includes home furniture, decor, accessories and interiors,” Navroze Godrej, head (strategy & innovation), said. While the Jamshyd Godrej-led group did not specify details of the transaction, it said the deal would help it drive growth of the lifestyle and home decor business online. The group has already taken some of its other consumer-facing businesses such as appliances and electronics online, tying up with e-tailers as well as setting up its own e-commerce platform. Currently, 60 per cent of its revenues come from the consumer segment, with the rest coming from its industrial business. The plan is to increase revenues from the consumer vertical in the coming years by tapping into emerging areas. Navroze, son of Jamshyd Godrej, who is driving this initiative, said the group will do this by investing in design and technology for which bolt-on acquisitions and collaborations will play a key role. “In the past, we have acquired small technology-led firms in the areas of renewable energy and consumer electronics. That focus will continue. Acquisitions for us will be to fill largely need gaps that exist in our portfolio,” Godrej said. Like cousins Tanya, Phirojsha and Nisa, children of Adi Godrej, Navroze is being groomed as a successor to his father Jamshyd, considered an authority on manufacturing. Godrej & Boyce counts defence and aerospace apart from engineering goods and energy as key industrial verticals. The group, for the record, manufactures missile systems, including key components and parts for the Brahmos missile and launcher. It also provides liquid propulsion engines, cryogenic engines and satellite booster systems for the Indian Space Research Organisation. In an earlier conversation with Business Standard, Jamshyd Godrej, who is chairman and managing director of Godrej & Boyce, had said the group’s annual capital outlay of Rs 200 crore could rise as it looks to tap opportunities from the government’s ‘Make in India’ programme. The group is currently putting up a new manufacturing complex at Khalapur, near Khopoli, in Maharashtra, where 10-15 factories would be set up for different businesses. This, Godrej said, would increase the number of factories the group had, from the current 30.
Source: Business-StandardGodrej & Boyce’s next phase of growth to ride on tieups
Industry: Retail 2016-01-20
