Furnitune spreading footprint in India
On the sales front during H1 FY22, Furnitune sold about 50,000 furniture units worth over Rs340 million, which is more than 60% higher than FY2021
Mumbai: City-based retail-as-a-service décor company Furnitune is planning to set up 40 standalone stores in the next three years in Mumbai and Pune, besides 12 leading metros across India with an investment of Rs1,000 million. The capex will be primarily to set up multi-city retail outlets, with each store expected to be admeasuring around 4,000-10,000 sq. ft. The company is the D2Csubsidiary of Innovation Modular System Pvt Ltd (IMSPL) founded in 2010 that specialises in B2B décor products.
Meraj Ahmad Chaudhary, Founder and CEO, Furnitune, said: "The projected revenue would include sales accrued from the central, northern, and eastern markets. On Capex, the company has plans to invest Rs900-1000 million to augment its manufacturing capacity and set up about 40 retail showrooms in the next 2-3 years. The on-demand custom furnishing company, which operates under the label of Furnitune has over 60,000 customers."
Although the second wave was unendurable in terms of economic loss, optional spending was still on the rise as the economy wasn't shut during the second wave. This helped our top line surpass Rs 340 million during H1 FY22, as against Rs230 million in FY21, and about Rs120 million in H1 FY21, which was emaciated by the pandemic. Going by the massive demand, we are certain that we'll be able to touch the Rs 750 million revenue milestone, this fiscal as our demands, is over and above the pre-pandemic level, he said.
On the sales front during H1 FY22, Furnitune sold about 50,000 furniture units worth over Rs340 million, which is more than 60 per cent higher than FY2021. On the profitability side, Ahmed said Furnitune makes around 15-18 percent gross margin year-on-year. While its retail expansion in Mumbai and Thane is underway, the manufacturing capacity addition at its Thane plant is on track. The Thane plant will have over 8,000 functionality-driven products.
For the first time in India, Furnitune introduced an end-to-end design mood board or schematic design service for customers at their doorstep. Targeted towards middle and mass premium segments, the company is eyeing revenue of Rs750 million this fiscal, rising above its own projected target for next year, thanks to the better-than-expected economic revival and the subsequent upbeat market demand during the first half of the year.
Today, when the industry is starving of modernisation, Furnitune's schematic service provides a comprehensive doorstep personalized 3D visual mood board architectural modelling service that offers a degree of realism in layout and furniture design, said Chaudhary.