Godrej Locks enters market with aggressive growth plans

By Cheranka Mendis

 Godrej Locks will launch an aggressive three year marketing and expansion road map in April 2012 in a bid to expand its global footprint with Sri Lanka at the forefront.

Godrej Locks, the number on locks in India yesterday announced a partnership with Abans Group to promote and market the brand’s globally renowned products in Sri Lanka. With the entire line up of products introduced, Godrej hopes to target both B2B (Business-to-Business) and B2C (Business-to-Consumer) markets.

Godrej Locks Executive Vice President and Business Head Shyam Motwani told the Daily FT that after the initial two to three months of setting up and product placement, the Group hopes to acquire 3-4% market share in the financial year starting April 2012. If the three year road map goes according to plan, the year after will bring in 5-7% and the last year will give the brand 7-10% of the market. “After April we will have a clear cut toad map to realise our targets and plans from 2012 to 2015. The road map will address issues of goals, market share, distribution, level of awareness in the Sri Lankan market etc.,” Motwani said.

On investment he admitted that after April 2012 the Group hopes to invest 3-5% of the revenue of sales marked from the country.

He stated that the Group targets the middle and middle upwards in the pyramid of the customer base. “Although we have products from the basic products to electronic security, we are not just serving the bottom of the pyramid because this category is already being served by others in the market. Our target market is the middle and middle upwards of the market.”

Within the first year of the three year plan, the Group will target the B2C base, he noted. The next year onwards the concentration will be B2B. “This (B2B) largely runs on direct marketing with customers being those from the hospitality and healthcare, property, telecom, logistics segments of the society,” Motwani said. “We feel that B2B and B2C will feed on each other with B2B industries being influential groups of the society.” Building on lessons learnt from India, the hometown of Godrej, Motwani expressed that two other segments will also be looked at when it comes to product marketing. The segments are ‘influentials’ as he puts it and holds architects and interior decorators under one category and carpenters in the other. “The first section caters both to B2B and B2C while carpenters are direct B2C drivers. Both groups hold the power of influence over their clients.”

He stated that the Group hopes to increase the business volumes to a level almost three times the size of the current value in a year and to five times the current size in five years. “The Sri Lankan market with a value of approximately US$ 50 million is a market with great potential. The market offers lot of opportunity in the retail and institutional segment.” Motwani stated that like the Indian consumers, Sri Lankan market is increasingly being aware of the security lock market and with the expected development, the demand for products will expand. “Perception of security threats are changing and people are more aware of the uses of such products.

Calling the tie-up a win-win for both Godrej and Abans, Director of Abans Saroshi Dubash expressed enthusiasm on the company’s latest venture: “The tie up will arguer well with Sri Lankan consumers, especially those in the construction and house building industry. The partnership will create huge vibes in the local market,” she said.

Godrej locks come in five levels of security solutions. Level one comes with a mechanical locking system, level two with a highly precise computerised dimple key with advanced multi-row pin-cylinder technology to level three which come with advanced angular multi-row pin-cylinder technology. Security level four known as Godrej EVVA comes with a revolutionary three curve system and the highest, level five comes with the most advanced, sophisticated and smart electronic technology.]

Pic by Waruna Wanniarachchi