Spacewood Furnishers Pvt. Ltd., one of India’s largest manufacturers of modular furniture, has announced its ambitious growth plans to achieve annual revenue worth Rs 1,000 crore by FY 2025, from its FY 2020 annual revenue of Rs 500 crore, by pursuing double digits CAGR growth rate.
Further, the company plans to invest Rs 100 crore over the next 3 years to strategically expand its retail reach, introduce new product offerings and segments, and explore international collaborations, among others.
Spacewood Group, established in 1996 by Kirit Joshi and Vivek Deshpande, is one of the fastest growing Indian furniture manufacturing brands, offering a premium range of Modular Furniture, Home Furniture, Pre-Hung Doors, Desking Solutions, and Institutional Solutions.
Currently, operating out of 1 million sq ft of a manufacturing facility in Nagpur, Maharashtra, the brand boasts of a significant market share as one of the preferred contract manufacturer and supplier for leading furniture retail brands, including Pepperfry, Amazon, Flipkart, Hometown, Home Center and over 500 + dealers, offering products and services, ranging from designing, manufacturing, layout, and installation.
Driven by the commitment to provide aesthetic, premium, and superior quality modular furniture that is essentially ‘Made In India’, Spacewood has been growing at 15 percent CAGR in the past five years and recorded annual group revenue of Rs 500 crore plus in FY 20. Through a strategically mapped growth plan, the company now aims to invest Rs 100 crore to expand its current market leadership to newer verticals, add more stand-alone stores, and embark on international collaborations.
Kirit Joshi, Co-Founder and Director, Spacewood Furnishers Pvt Ltd, said, "The Indian furniture consumption trends have been dramatically disrupted with the pandemic and the new work from home trends, which has led to an increased demand for modular, multi-functional and customised furniture for home-offices and home-schooling, that can be bought online instead of from the traditional stores. These trends have changed the face of furniture retailers across the urban market as well as in smaller towns and tier II cities."
"The above trends in the furniture sector, coupled with positive manufacturing trends, like ‘Make In India’, the introduction of 100 percent FDI in contract manufacturing, and the efforts to make India the manufacturing hub of the world, are all going to be instrumental in the growth of Indian furniture manufacturing sector. And we at Spacewood, aim to leverage this to achieve rapid, inorganic growth in the next three years, with a foray into specialised healthcare furniture and educational furniture, which offers tremendous growth potential. Additionally, we are expanding our retail presence, from 18 cities to 30 cities and aim to retain our leadership presence across online and offline furniture market, with an expansive consumer base, catering to public and private sector offices, builders, dealers, online sales, and stand-alone retail stores," he added.
Spacewood has been setting new benchmarks in modern design and concept furniture, especially for kitchens, wardrobes, and bedrooms. Under their home furniture range, the brand is set to launch a unique shop-in-shop ‘bedroom concept’, which will be exclusively available at large multi-brand stores. It's kitchen and wardrobe designs are currently available across 30 exclusive stores, apart from multi-brand and other sales channels, and the company aims to expand to 100 stores with smaller and bigger formats, scaling up its presence from the current 18 cities to 30 cities in India.
Spacewood has also been a pioneer in introducing superior international products and solutions to the Indian market. In line with the growing potential for healthcare and educational furniture, Spacewood aims to venture into these new sectors by collaborating with the US-based Cramer LLC, and aims to introduce a range of hospice and modern laboratory furniture solutions, for the Indian market. With an extensive design collaboration with Tim Wallace, Spacewood is set to bring stylish workstation solutions for Indian offices, and help cater to the changing work trends in the new normal.