The ₹600-crore Godrej Security Solutions (GSS), which has seen sales of its commercial business stagnate primarily due to the muted branch expansion of banks, is turning its focus towards retail home safety and security solutions to tide over the slowdown.
As part of this strategy, the company plans to launch more products aimed at the segment and expand its distribution network. Commercial business operations, which primarily include providing mechanical and electronic security systems for banks and offices, account for nearly 57 per cent of the company’s total business. The retail segment accounts for around 33 per cent, while international business accounts for around 10 per cent of the company’s total turnover.
According to Mehernosh Pithawalla, Vice-President and Global Head, Marketing, Sales and Innovation, Godrej Security Solutions, penetration of home safes and lockers in India is very small at around 7 per cent. However, the demand has been growing at over 25 per cent on a year-on-year basis. The home-safes-and-lockers market in India is estimated to be around ₹200 crore. The company holds a nearly 80 per cent share in the market.
“Growth is not happening much in the banking sector as opening of new branches has gone down. However, retail growth in safes and lockers has been over 25 per cent. We are looking to tap the retail segment for the next 2-3 years,” Pithawalla says. GSS will look to grow this market by creating awareness and increasing penetration.
The company has earmarked around ₹15 crore for enhancing awareness on home safety and security solutions. “We are currently present across 7,000 outlets; we plan to scale it up to 9,000 by the end of this fiscal. We are also looking at product expansion across portfolio in home lockers,” he said. Backed by a robust growth in retail and international businesses and expansion of footprint, GSS is expecting to clock 15 per cent growth in turnover this fiscal.