Date:13/09/2006 URL: http://www.thehindu.com/2006/09/13/stories/2006091301271700.htm

Business

Godrej to invest Rs. 20 crore in Chennai

Staff Correspondent

`Godrej Interio' to offer complete furniture solution

The Ambattur unit to go on stream next year

Plans to acquire units in the U.S, U.K.

CHENNAI: Godrej and Boyce Manufacturing Company will set up a new furniture manufacturing plant in Chennai with an investment of Rs. 20 crore.

Announcing this on Tuesday while unveiling 'Godrej Interio,' the `complete furniture solution' for homes, offices and special projects, its Chief Operation Officer, Anil Mathur, told reporters that the new unit would be the third manufacturing facility of the company in Chennai.

The company has a unit each at Ambattur and the MEPZ Special Economic Zone. The third one would come up near its Ambattur plant and go operational by the end of the year.

Godrej & Boyce unveiled the new brand for its furniture and interior business, `Godrej Interio,' by merging all its existing brands. Mr. Mathur said the company hoped to acquire two manufacturing facilities in the U.S. and U.K., each involving an investment of Rs. 200 to 250 crore. Godrej had decided to have designing tie-ups with French and Italian firms. The company would also invest Rs. 150 crore in overall expansion activities, he added.

Mr. Mathur said the turnover of the furniture division stood at Rs. 600 crore. With an eye on increasing the overall growth to 33 per cent from 25 per cent, huge investments were being made in the business. This included investment of Rs. 100 crore for technology and brand building. As a result, the company was expecting a turnover of Rs. 800 crore in 2006-07. He said the new brand of home and office furnitures would be sold both in Godrej's Lifespace outlets and in exclusive ``Godrej Interio'' outlets. The company was planning to open ten such exclusive units in Chennai.