Facing a slowdown in demand for its product in the commercial segment, leading security solutions provider Godrej Security Solutions (GSS) is now betting big time on the home security system to drive growth.
“The demand in the home security solutions market is growing at 25 per cent year on year. However, penetration level of security system is just 7 per cent in residential homes, meaning there is a huge opportunity to grow,” Mehernosh Pithawalla, VP and Global Head (Marketing), Sales and Innovation, Godrej Security Solutions, said.
The company is looking at a business turnover of Rs 740 crore next fiscal year. The company also announced expansion of its manufacturing capacity at Mumbai facility by 25 per cent next year. Currently, the facility produces 3 lakh units of lockers per year. Besides lockers, Godrej also sells surveillance systems and cash-handling systems. To create awareness and meet the rising demand, Godrej is investing Rs 100 crore in the next two years on marketing and Research & Development.
It also plans to launch a nationwide campaign to educate and raise awareness amongst potential customers on the importance of securing a home to save householders from collateral damages.
Last year, the company clocked a revenue of Rs 600 crore and most of this came from commercial segment, which are mainly banks and non-banking financial companies. However, consolidation, merger and shutting down of financial institutions throughout the country have lowered demand coming from this segment in recent times.
Home security segment, which contributed roughly Rs 200 crore in the total revenue, has now become the company’s key focus area. Godrej said it will continue to expand its retail reach in the country, open an e-commerce portal and diversify its product portfolio to tap this segment. At present, the company has lockers priced between Rs 5,000 and Rs 8 lakh.
“We are set to open 1000+ new retail outlets in Tier 2 & Tier 3 markets by the end of FY2020. This will allow them to consciously opt for security solutions they didn’t have access to previously,” Pithawalla said. “We have also launched an exclusive e-commerce portal that will help our consumers the utmost convenience to purchase products from anywhere across the country,” he added.
Company eyes Rs 740 crore turnover
Godrej Security Solutions (GSS) is looking at a business turnover of I740 crore in the next fiscal year, a senior company official has said. The company expects the growth to be driven by the retail segment, which includes home safe and electronic security systems.