237
/ 9
Min Read
As India’s furniture market booms, Godrej Interio is scaling up through digital innovation, retail expansion, and a strong franchise network. Swapneel Nagarkar, Executive Vice President and Business Head, shares how the brand is targeting untapped cities, enhancing customer experience, and planning for a 30% growth in its B2B segment by FY27.
Godrej Interio has been a household name in the Indian furniture industry. What are the key growth milestones the brand has achieved in the last 3-5 years?
Over the past 3-5 years, Interio has expanded to over 1000 stores across 600+ cities, adding 320,000 sq. ft. of retail space. The brand introduced 400+ new products, including the UPMODS range—customizable and upgradable furniture offering flexibility. E-commerce sales grew by 12-23% in FY25, with plans for 18-20% overall topline growth in coming years. Digital enhancements include AI-led Visual Search and 3D Room Planner features.
Interio is targeting 30% growth in B2B business by FY27, expanding in institutional furniture solutions. With the office furniture market projected to grow from USD 5.8 Billion in 2024 to USD 13.0 Billion by 2033 at a CAGR of 8.83%, Interio has allocated INR 55 crore to transform its product portfolio and capitalize on workspace solutions opportunities. The B2B business targets 15% growth in FY26, with strong traction in ergonomic products such as Motion & Thrill Chairs and Flexmeet workstations. Interio has approximately 70 products with design registrations and 9 with patents, enhancing value for modern Indian homes through aesthetically pleasing, tech-integrated furniture designed for flexible living.
Which product segments are currently driving the most growth—home, office, or institutional furniture?
.The Indian furniture industry is evolving to meet demand from millennials and Gen Z consumers who prefer modern, minimalist, and functional designs. Manufacturers are developing versatile, space-saving solutions, including modular furniture and multifunctional pieces such as sofa beds and extendable dining tables. This responds to urban demand for adaptive home furnishings. Digital transformation has altered purchasing patterns, with younger consumers selecting online furniture shopping. Brands are implementing technology to deliver customized shopping experiences for these demographics.
What role does technology play in enabling business expansion—both in manufacturing and customer experience?
Interio is investing in digital technologies, automation, and processes to establish an omnichannel furniture brand with nationwide presence.The integration of IoT and Manufacturing Execution Systems across manufacturing plants enables real-time data collection and analysis, improving speed and accuracy. IoT sensors monitor equipment performance and detect potential issues, allowing for proactive maintenance. These systems eliminate delays, reduce errors, and improve timeline accuracy.
AI enhances quality control by identifying defects in real-time, reducing waste and rework costs. Robotic Process Automation improves productivity and workplace safety by handling hazardous tasks. Interio continues exploring AI-driven demand forecasting and supply chain optimization for inventory management and logistics.
Could you share your vision for Godrej Interio’s expansion over the next 3-5 years in India and globally?
Interio's current business stands at approximately ₹3,500 crore. The company is targeting an annual growth rate of 18 to 20 percent, compared to the current rate of 12 to 13 percent.
A significant focus area will be the expansion of the ecommerce business. The ecommerce vertical has reached ₹100 crore, having doubled from the previous year. The company aims to increase the share of ecommerce to 10 percent of total revenues over the next five years. This will be achieved by revamping the company’s website, enhancing digital personalisation, and expanding presence on third-party platforms such as Amazon and Flipkart.
In the B2B segment, Interio is developing solutions that address workplace needs with an emphasis on sustainability and employee well-being. Over the past three years, the company has launched several office products in this category. Approximately 18 percent of the annual revenue is generated from new products and solutions. Office seating solutions currently hold a 14 percent market share, and the company plans to increase this to 18 percent by the end of FY25. This segment contributes 30 percent to the overall B2B revenue.
What is the current store count and mix between company-owned and franchise outlets?
Interio operates through a network of 450 exclusive showrooms, 520 dealer outlets and 7 manufacturing facilities located at Mumbai, Khalapur, Haridwar, Shirwal, and Bhagwanpur across India, ensuring efficient distribution and supply chain management.
How do you plan to scale your presence in Tier 2 and Tier 3 cities, and what challenges do you foresee in those markets?
Interio blends digital and retail stores to deliver an omnichannel experience. While expanding offline presence, the company is increasing online penetration with aims to increase e-commerce revenue by 30% in FY26. Products are delivered to over 17,000 pin codes across India. The company adds two exclusive showrooms weekly, having opened 104 in the past year and 220 in the last two years, strengthening presence across metros, Tier II and III cities. Additionally, Interio has onboarded approximately 700 new retailers and distributors to penetrate deeper into towns and villages. The brand now operates 1,015 exclusive stores plus approximately 3,700 retail outlets in the distribution network, totaling over 4,000 retail points.
How important is the omnichannel model for Godrej Interio? How are online and offline channels integrated for a seamless consumer journey?
The boundaries between physical and digital shopping are rapidly dissolving, giving birth to what experts call "phygital" experiences. This approach seamlessly integrates online and offline channels, creating immersive and flexible shopping journeys that cater to the most demanding consumers. Virtual try-on rooms, augmented reality product visualizations, and interactive in-store displays enhance the shopping experience. Omnichannel strategies have become essential as consumers expect seamless interactions across multiple touchpoints. The modern shopping experience spans online platforms, mobile applications and physical stores.
Interio maintains presence on online marketplaces alongside its own e-commerce platform, aiming to increase online market share to 10% within 3 years. Currently, Interio delivers furniture to 17,100 pin codes. The company targets 18-20% overall topline growth in coming years compared to current growth of 12-13%. The website is being revamped with digital personalization to improve customer experience and increase e-commerce presence through both proprietary channels and platforms like Amazon and Flipkart.
How significant is the franchising model in your overall retail expansion strategy?
The retail industry in India has grown significantly due to urbanization, rising incomes, and evolving consumer preferences. Franchising has emerged as an effective model within the retail sector, allowing brands to expand while minimizing risks. Interio aims to enhance the home furnishing experience by combining retail expansion with technological innovations. The increase in physical touchpoints is transforming how Indian consumers interact with furniture.
How do you maintain brand standards across franchise stores, especially in smaller towns?
The Franchise partners undergo structured onboarding and in-depth induction processes. They access training modules on product range, consumer schemes and sales techniques that match company-owned store standards. The brand provides centralized support for financing options, lead generation, and digital initiatives.
Regular audits and monitoring of reviews maintain quality control across locations. For smaller towns, product offerings are adjusted to align with local preferences while maintaining core brand standards. Store design elements, staff uniforms and customer service protocols remain consistent across all locations to ensure uniform brand experience regardless of store location or ownership model.
As a leader, how do you balance innovation with legacy in a brand like Godrej Interio?
Interio employs a consumer-centric design philosophy based on understanding of consumer needs and preferences, focusing on emotional connections to furniture, and providing value through personalized solutions. The company holds over 700 design registrations and 20 patents. Products offer flexibility in interiors through tech integration, custom finishes, and modular options for diverse requirements.
Quality and functionality remain priorities with emphasis on comfort and aesthetics, multiple prototyping stages for product refinement, and manufacturing facilities that ensure design integrity. Interio maintains global standards with local relevance through research on innovative materials and processes, benchmarking against global standards and designs tailored for Indian lifestyles.
How are you building a future-ready organization in terms of talent, sustainability, and digital transformation?
Interio works with suppliers to train them on energy efficiency, water conservation, renewable energy, GHG emissions, waste management, material conservation, recycling, green supply chain, and green infrastructure and ecology.Sustainability goals are implemented across manufacturing locations. Despite adding manufacturing facilities, Interio achieved water positivity status, 28% reduction in carbon intensity, 41% reduction in specific energy consumption and 10% reduction in specific water consumption since FY11.
Interio increases renewable energy usage, with 13% of total energy consumption sourced from renewable sources through solar panels, producer gas plants, and briquette-based heaters. Manufacturing plants in Shirwal and Haridwar have installed 360 kW and 329 kW roof-top solar panels, respectively.
What advice would you offer to emerging leaders in the Indian retail and furniture space?
The retail industry is undergoing a seismic shift, powered by a perfect storm of technological innovation, changing consumer expectations, and a global consciousness that demands more than just transactions. We are witnessing the dawn of a new retail ecosystem that promises to redefine not just how we shop, but how businesses understand, engage and serve their customers.
Finally, what exciting developments can customers and partners expect from Godrej Interio in the coming year?
Interio is investing in digital technologies, automation, and processes to build a robust, omnichannel furniture brand with nationwide presence. Recent product launches including Upmods series, Kreations X3, Kitchen 2.0, and Economy range offer enhanced customer experience through configurators, 3D planners, and personalized offerings.
Our store personals work with customers to visualize spaces with Interio furniture and provide design consultancy. The strong omnichannel strategy aims to bring the brand closer to customers. Interio is launching 'Product ATMs'—glass enclosures outside showrooms with AI-assisted screens. These kiosks will allow customers to browse, configure, and purchase furniture beyond showroom hours, with security personnel available to verify receipts, enhancing convenience for customers with busy schedules.
