Godrej Enterprises Exploring Ways to Make its Landholdings in Mumbai Value Accretive
Godrej Enterprises Group (GEG) has announced its plans to invest around Rs 4,000 crore in streamlining its 14 verticals and boosting its consumer-first and nation-first businesses. The group is also looking to unlock value, particularly in its extensive real estate holdings in Mumbai. Executive director Nyrika Holkar discussed the company’s growth strategy and emphasized the importance of faster decision-making and organizational agility.
Investing in Consumer-First and Nation-First Businesses
The funds will be directed towards the group’s consumer-first and nation-first businesses. This includes strengthening the furniture brand Interio and positioning it as a lifestyle label. The consumer-first businesses encompass furniture, security, and locks, while the nation-first ones include aerospace and process engineering. Currently, appliances and interiors are the biggest revenue generators for GEG, followed by locks and security.
Exploring the Value of Landholdings in Mumbai
Godrej Enterprises Group is also exploring ways to make its landholdings in Mumbai value accretive. With approximately 3,400 acres in the Mumbai Metropolitan Region, most of which are located in and around the suburb of Vikhroli, the company sees Vikhroli development as a key focus area for the coming years. Additionally, the group aims to leverage the strength of its consumer-facing businesses to drive growth, utilizing the strong equity of the Godrej brand.
Streamlining Business Operations
Nyrika Holkar mentioned that the realignment of GEG was the result of discussions among all family branches. The objective was careful decision-making to optimize for the family, the brand, and key stakeholders, without disrupting the operational businesses of either group. Throughout the process, the focus was on obtaining a fair and equitable arrangement.
Expanding Interio as an Aspirational Lifestyle Brand
As part of its growth strategy, GEG has invested significantly in its furniture business, Interio. The company aims to establish Interio as a market leader in furniture and furnishings, targeting various sectors including home, workspaces, healthcare, and education. Investments have been made to enhance the brand experience for customers, including refurbishing 200 stores across the country. GEG also plans to pivot to an omni-channel experience by studying online platforms and exploring ways to improve the overall consumer experience.
Sustainability and Consumer Experience
In line with India’s goal of achieving net-zero status on carbon emissions by 2070, GEG is committed to contributing to environmental sustainability. The group intends to focus on how they construct and utilize the built environment to minimize greenhouse gas emissions. Moreover, GEG recognizes the importance of delivering an improved consumer experience across all touchpoints. The company aims to enhance service quality, equip its frontline teams with relevant digital tools, and resolve customer issues promptly.
With its investment plans and efforts to unlock value in its real estate holdings, Godrej Enterprises Group is taking a proactive approach to ensure growth across its diverse business verticals. By capitalizing on its consumer-first and nation-first businesses and prioritizing sustainability and an enhanced customer experience, the group intends to maintain its position as a market leader in the industry.
