Spacewood Furnishers announces strategic alliance & 26% equity stake from Japan's Sumitomo Forestry

REAL ESTATE

by Shrutee K/DNS

Spacewood, one of India’s leading furniture companies announced a wide ranging strategic alliance with Sumitomo Forestry, a large forestry, housing and timber and building materials trading company based in Japan. Through the alliance, Spacewood Furnishers will establish itself as the leader in interior and building materials business in India and South Asia by bringing world class manufacturing facilities and full line of products. The company will also increase its retail footprint from existing 15 stores to approximately 50 stores offering such products to discerning Indian consumers.

As a part of this alliance, Spacewood in association with Sumitomo Forestry Crest Co., Ltd., a 100% subsidiary of Sumitomo Forestry, will set up a new manufacturing facility for the production of pre hung doors. These specialized doors offer immaculate finish, life style experience and convenience of installing in a short time. With the aim to expand the existing business from kitchen products and home furniture businesses to manufacturing of wooden interior and building materials, the company will now offer integrated and comprehensive home solution in building materials. 

Speaking on the occasion Mr. Kirit Joshi co- founder of Spacewood said, “I am really pleased to announce the association with Sumitomo Forestry. This association has brought significant opportunity of growth to Spacewood. As far as I know, this is the first FDI investment in our industry. Home segment is currently dominated by carpenters. However, there is a major shift towards ready-made products. Spacewood is a major player in this category, with a pan-India distribution network and  tie-ups with leading modern trade players such as Home town and E-Commerce portals such as Pepperfry.com.“

Adding to this Mr. Vivek Deshpande, co-founder said, “Modular wooden furniture is one of the fastest growing categories in furniture segment in India and Spacewood has a leadership position in the same. The company owned stores are present in major metros to cater to individual needs. Further, the company has also tied up with leading builders such as Tata Housing Ltd, Kolte Patil Developers Ltd., and IREO. The investment and technical collaboration from Sumitomo Forestry will help us leverage our position in the segment to become the largest furniture producer in India.”

Mr. Ozaki, General Manager, Sumitomo Forestry, said “We are very excited about Indian market and our partnership with Spacewood and its founders, Mr. Joshi and Mr. Deshpande.  Spacewood and Sumitomo Forestry desire to contribute to the evolution of housing and enhancement of living environments in India through the introduction and adoption of new building materials and technology from Japan. India has become a very important strategic market for us and we will continue to invest and look for opportunities here.”

KPMG Corporate Finance was the exclusive financial advisor and DSK legal was the legal counsel for Spacewood Furnishers Private Limited. Nomura Research Institute acted as lead financial advisor and Anderson Mori & Tomotsune and J. Sagar Associates were the legal counsels to Sumitomo Forestry.

About Spacewood Furnishers Pvt. Ltd.

Spacewood, a first generation entrepreneurs run company, is one of India’s leading manufacturers of modular furniture.  The company that was founded in 1996 by Kirit Joshi and Vivek Deshpande has been making rapid strides, offering complete solutions for modular kitchens and home furniture. Spacewood has a state of the art factory in Nagpur.  The factory is equipped with modern European technology and manufactures approximately 100,000 kitchen cabinets and 30,000 bedroom sets every year.  The products are designed by professional designers with international design expertise and collaboration.  Spacewood has 15 company owned stores across India offering modular kitchens, wardrobes, and home furniture. The company has ISO 9001: 2008, ISO 14001:2004 and ISO 1800:2007 certifications. To know more, visit: http://www.spacewood.in/

About Sumitomo Forestry Co., Ltd.

Sumitomo Forestry Co., Ltd., established in 1691, traces its origins in forestry business and currently owns and manages 46,247 hectares of forest land in Japan, and manages 200,000 hectares overseas. It is mainly engaged in three segments – Timber and Building Materials, Housing, and Overseas Businesses. Timber and Building Materials segment purchases, manufactures, secondary processes and sells timber products and building materials. Housing segment constructs, sells, maintains and renovates detached houses and multi-unit residences, and undertakes exterior, landscape and greening works. Overseas Businesses segment is engaged in the purchase, manufacture and sale of timber products and building materials overseas, as well as the contracted construction and sale of detached houses. As of March 31, 2015, the Company had 72 consolidated subsidiaries and 21 associated companies.

 To know more, visit: http://www.sfc.jp/