EFC's Furniture Segment To Grow 10-20% In Two Years On Order Pipeline

Whole-Time Director of EFC Limited, Nikhil Bhuta, is enthused about the company's latest foray into the furniture segment. In an interview with NDTV Profit, Bhuta noted that though this segment currently contributes only 3-5% to the top line, it is envisioned as a key component that completes the company's real estate eco system.

Bhuta said the furniture division operates its own three-acre factory where it manufactures a variety of furniture, including woodwork, metalwork, and seating systems. The company caters to diverse industries, including hospitality, residential, and commercial sectors, and also handles exports and private institutional projects.

"We have a total order book of around Rs 40 to 50 crore and we are expecting to close substantially well, going with the same run rate," Bhuta said. He said the furniture factories had a total capacity to produce goods worth around Rs 275 to Rs 300 crore.

"This financial year we should be able to at least achieve a capacity utlisation of about 40%-45%, this being practically the first full financial year." Looking ahead, the company has ambitious growth plans for this segment.

Bhuta projects the furniture division's contribution to the total top line will grow from its current 3-5% to an 10-20% over the next two years, reflecting a strong pipeline of business.

"We are certainly expecting this segment to grow from 10% to around 20% with the kind of growth plans already in the pipeline. In the next two years, this segment should contribute at least about 20% to the top line," Bhuta said.