Tata Steel plans to expand its home solutions business into a Rs1,000 crore business over the next three years as the company increases its focus on the retail segment that includes doors windows etc.
With monthly sales of 15,000 units of its branded doors 'Pravesh' - steel doors with a wooden finish - growth will primarily be driven by doors and windows, according to the company.
Apart from doors and windows, the company has introduced customised wardrobes (on a pilot basis) targeting solutions for the home-segment.
Its steel doors are selling at a fast clip and a Rs200 crore turnover at the business in 2018-19 looks realistic, a senior company official said.
''We are offering this more as a solution rather than a mere product'' reports quoting Peeyush Gupta, VP steel (marketing & sales), said. Currently, about 15,000 units of 'Pravesh' doors are being sold every month and the potential is substantial given the government's thrust on housing, according to Gupta.
With the retail operations gaining momentum, Tata Steel plans to introduce new products, which will enable it to penetrate the home segment with branded offerings.
Tata Steel, which enetered organised retailing in 2006, has now identified retail, brands and solutions as a major vertical, which will have an increasing share in its product basket. From a five-per cent share in sales in 1999-2000, the segment comprised 45 per cent of total sales in 2016-17.
Other products that contribute to Tata Steel's retail volume include: Tata Tiscon (TMT rebars) - used as reinforcement in construction industry - (about Rs5,500 crore), Tata Shaktee galvanised corrugated sheets - used mainly as roofing - (Rs. 2,500 crore), and products that are sold to the SME segment (classified as emerging corporate accounts).
Gupta said Tata Steel's new initiatives in the retail segment include innovative door locks, which may include biometric recognition. The doors, which come with a wooden finish, are termite proof and fire resistant.
It had earlier said that these initiatives had coincided with the commencement of newer capacities at the Kalinganagar plant.
Tata Steel is also planning to expand its dealer network from 1,000 to 2,500 so as to take the doors to all districts and towns. It is also looking to offer the solutions through high-end property developers.
The company is also encouraged by the response to its easy-to-erect steel toilets. Mainly aimed at schools, disaster-hit areas and project sites, the Nest-In range, is among its innovations.
Pravesh Doors are steel doors and exude the elegance of wood and the strength of steel while offering value for money in terms of price, quality, durability and security. Pravesh doors, quite unlike wooden doors never age with the passage of time and adorn the fašade of entrances for generations, according to the company.