Digital locks contribute to around 3-5 per cent of the overall lock category and with double digit growth, it will account for more than 10 per cent of the overall category, said Shyam Motwani, Business Head, Godrej Locks & Architectural Fittings and Systems. The brand invests about 6-7 per cent of its overall revenue every year in areas of capacity, capability, brand building, new product development, and innovation. In an exclusive interaction with FinancialExpress.com, Shyam Motwani said that the company generated a revenue of Rs 250 crore for each quarter this fiscal. “We completed 9 months of the fiscal year in December and are anticipating to grow by more than 25 per cent year-on-year. The expected growth rate for the coming year is 15-20 per cent.” Here are edited excerpts from the interview…
How do you ensure your digital locks are secure from tampering or hacking?
Digital locks have numerous features that can safeguard the end user from hackers or thieves. All these locks offer integrated mechanisms that protect the end user against such malicious intent and malpractice. Digital locks offer multi-authentication via PIN, smartcard, manual key and biometric accessibility options. This is an additional security measure wherein you can add two-factor authentication to protect yourself against unauthorized access to your smart locks.
What kind of sales growth do you expect this year?
At the moment, digital locks contribute around 3-5 per cent to the entire lock category. The growth will be in the double digits, in the region of 25-30 per cent on a small base. The base effect will always be present until it reaches a certain size. With acceptance and significant expansion in the coming years, the digital lock segment will account for more than 10 per cent of the overall category, within the next four years.
Are there any plans to increase or reduce the prices of your product categories? What will be the quantum of the price rise or fall?
We are discovering each day as to what sort of acceptance we are finding with the various pricing that are currently accessible for our range. So, once we have a good understanding of what the ultimate analysis is, as well as the consumer’s choice and expectation of the price that they are willing to pay for a reliable digital door locking solution, we will make decisions in terms of correction, if necessary, or introducing new products at the price points that the consumer desires.
Tell us about your current retail presence and your expansion plans for this fiscal.
We have a network of distributors which would be over 500-550 nationally. We supply to approximately 20,000 to 23,000 retail outlets in the country through our 500+ distributors, and we also have a presence in modern commerce in numerous chain stores in India. We are also present on e-marketplaces. We don’t yet have our e-commerce website, however, our online presence is doubling every year, and it is growing by the day. In the next three to five years, the share of modern trade and e-commerce will improve and surpass that of traditional trade.
What kind of investment are you planning to facilitate these plans?
We’re currently working on annual operating plans for the next three years, so it’s too early to put a number on it. Every year, we see investments in technology and new product development. We definitely end up investing about 6-7 per cent of our revenues every year in areas of capacity, capability, brand building, new product development, and innovation.