Godrej & Boyce chalks out retail revamp strategy,
Financial Express, New Delhi, Dec 15, 2004:
In a bid to keep pace with the fast changing retail environment, Godrej &
Boyce Manufacturing Company Ltd has appointed a Delhi-based consultancy, Intrim
Business Associates to streamline the business processes of its newly
formed retail division. As part of its renewed focus, Godrej's retail division
has also chalked out an aggressive expansion plan of its company-run showrooms
which market a range of products manufactured by the company, including refrigerators,
washing machines, air-conditioners, furniture and security equipment.
"We plan to open 10 more showrooms in this fiscal and another 7 in the
next financial year. By the end of fiscal 2005, we will take the total number
of showrooms to 50," Godrej & Boyce vice-president BN Doongaji told
FE.
Godrej retailing division was formed in April 2003 primarily to bring the entire
company-run showrooms under one division and to showcase "the new face
of Godrej". According to Mr Doongaji, over the years, Godrej & Boyce
has changed its product range to make it more contemporary and modern. While
it was always strong in the office and industrial segments, in the last two
or three years, the company has made a strong foray into the home segment.
Towards
that, the company is even considering retailing non-Godrej products like furnishings
and accessories in the 'home' segment from its outlets. "The idea is to
leverage the infrastructure and add on to the product portfolio," Mr Doongaji
said.
Godrej retail division already has 33 showrooms spread out in cities like Chandigarh,
Kanpur, Lucknow, Jaipur, Mumbai, Pune, Chennai, Bangalore and Hyderabad sprawling
over 85,000 sq ft. The thrust in the current year would be in cities like Mumbai,
Delhi, Bangalore, Chennai, Hyderabad and Pune, he added. "We are trying
to fill the gaps in our coverage by opening stores in say Noida and Gurgaon,"
he said. The company plans to invest Rs 5 crore over the next two years to revamp
these outlets. The division hopes to achieve a sales turnover of Rs 100 crore
in the next two years from Rs 42 crore now. The Rs 1,900 crore closely-held
Godrej Group company currently has several divisions including machine tools,
security systems, furniture and construction.
B.N.
Doongaji
Vice President,
Godrej & Boyce.
"Intrim has an insightful approach and we are happy
to work with them."
Sumit
Ray
Marketing Manager,
Tata Steel.
"Intrim
has an indigenous mind set, which recognises global realities; we normally don't
hire consultants but will work with them."
Noel Tata
Managing Director,
West Side.
"It is amazing how quickly Intrim understood our
complex issues."
Sunil Seth
Chief Of Marketing Long Products,
Tata Steel.
"Working with you over the last month I realise Intrim
is a different type of consultant; you like to make things work."
Ravindra Jain
Business Head,
DS Foods.
"We have never met a consultant who believes so much
in fair practices."
Haresh Shah
Member Marketing,
Khadi Commission.
"We
have as market researchers worked with many consulting firms, Intrim's approach
to market research is unique and really gives value to clients."
Anil Rathod
Proprietor,
Net Reactions.
"I read the case on 'Selfless Values' in Business
World this week. I feel that I have got a very good insight now. I'm specializing
in HR. I was able to relate the case with my studies and the other case in Group
dynamics as well. I recently went through a case on Politics in organizations
and the right approach to handle such kind of politics. The case analysis helped
in relating the relevant matter to it. I wanted to forward my thanks to you."
Preeti Agarwal
PGDBM Program Student,
IMT Ghaziabad.