Making It Big In The Furniture & Interior Business

FDT Bureau

The furniture industry in India holds immense growth potential, yet it lags in organization and branding compared to its Asian counterparts. Two esteemed gentlemen, Kirit Joshi, Co-Founder, Spacewood and Vijai Subramaniam, Chairman, Royaloak Furniture shared their journeys and insights during a candid conversation at the India Furniture Conclave, offering a glimpse into the challenges and opportunities that lie ahead. Moderated by Pragat Dvivedi, Founder Editor Ply Reporter and Director MATECIA and India Furniture Conclave, the discussion revealed the secrets to scaling the furniture industry, highlighting the importance of vision, execution, and consumer-centric approaches.

The event began with Pragat Dvivedi introducing the distinguished guests, “Manufacturing and retail are the twin pillars of the furniture industry, one shaping the product, the other shaping the market. With industry stalwarts like Mr. Kirit Joshi and Mr. Vijai Subramaniam, the discussion will center around how to truly scale and break beyond limits.”
Kirit Joshi, often referred to as the ‘poster boy’ of the furniture sector, shared the story of Spacewood, his company, which started humbly in 1994 with a small workshop manufacturing components for OEMs. Over the years, Spacewood evolved, moving up the value chain. They transitioned from being a component manufacturer to producing complete products for OEMs and eventually establishing themselves as a branded product company with their own retail operations.

" The hunger for growth tends to be limited - from 25 crore to to 100 crore or 200 crore INR. However, the thought process needs to change when aiming for a billion-dollar company or more" . - Kirit Joshi, Co-Founder, SPACEWOOD



Kirit emphasized the need to keep things in perspective, drawing comparisons to furniture companies in other Asian countries. He mentioned the impressive turnovers of companies in China, Japan, and Thailand, pointing out that the top companies in these countries far surpass the combined revenues of the top six furniture companies in India. This led him to the conclusion that while the Indian furniture industry aspires to be ‘big,’ it is still in its foundational stage, presenting numerous growth opportunities.

According to Kirit, the challenges of scaling up are strategic rather than transactional. He identified several key challenges, including a lack of clear, long-term vision among businesses, weak determination, and inadequate execution capabilities. He also highlighted the importance of management bandwidth, noting that many companies are founder-driven or small scale, limiting their ability to manage and scale operations effectively.

Vijai Subramaniam then shared his journey in the retail sector, recounting how he started small and gradually expanded to over 200 furniture stores across India. He attributed his success to a clear vision and attention to detail, emphasizing that the furniture industry is the second-largest retail sector globally, yet only 7% of it is organized in India, leaving ample room for growth. Vijai also pointed out the high demand for furniture and the lack of supply, particularly for affordable branded options, as only 7% of the furniture industry is organized or branded.

The discussion then shifted to the potential of the furniture industry, with Vijai attributing his recognition of this potential to the limited supply of organized retailers. He emphasized the need for a clear vision and space in retail, stating that customers seek variety and product experiences. Kirit agreed, adding that the execution of vision is crucial, and many businesses struggle with it. They both highlighted the importance of strong leadership teams and the need for unique, innovative approaches rather than simply copying successful models. Kirit provided insights into the growth of the furniture industry over the years, noting that until 2010, the office furniture sector experienced significant growth, driven by the need for modular office designs by IT companies. He pointed out the fragmented nature of the home furniture market, with thousands of small players, as a key challenge hindering the industry’s growth.



" Manufacturing and retail are the twin pillars of the furniture industry - one shaping the product, the other shaping the market. With industry stalwarts like Mr. Kirit Joshi and Mr. Vijai Subramaniam, the discussion centers around how to truly scale and break beyond limits." - Pragat Dvivedi MATECIA and India Furniture Conclave 

When asked about the possibility of an Indian retail brand reaching a valuation of 5,000 crore in the next five years, Kirit expressed optimism, stating that with the right vision and execution, companies can achieve significant milestones. He also emphasized the role of funding, not just for capital but also for bringing in valuable management expertise to accelerate growth. Vijai, on the other hand, believed that funding was not a significant issue, stating that effective people management was more crucial for business growth.

As the discussion drew to a close, Kirit offered several key takeaways for the furniture industry. He stressed the importance of having a larger purpose beyond monetary goals and focusing on one clear investment plan. He also advised paying attention to input goals rather than solely focusing on output, and emphasized the need for positive actions rather than just positive thinking. Vijai added that the industry would continue to grow significantly, and success would come from execution, innovation, and technology. He also highlighted the importance of finding the right products for customers and balancing offline and online channels.

The conversation concluded with Kirit and Vijai sharing their insights on sustaining furniture factories, with Kirit emphasizing customer acquisition and the need for direct-to-consumer brands. Vijai reiterated the high demand and low supply of organized, branded furniture, stating that there was room for more brands to thrive in the Indian market.



The event, filled with insightful stories and thought-provoking discussions, left the audience with a deeper understanding of the furniture industry’s potential and the strategic approaches needed to scale successfully. Kirit Joshi and Vijai Subramaniam’s journeys served as a source of inspiration, showcasing the power of vision, resilience, and consumer centric strategies in achieving growth and innovation within the furniture industry.
(Based on the discussion ‘Making it Big in the Furniture Industry and Interior Business’ held at the India Furniture Conclave.)

"Success in retail isn’t just about selling products— it’s about creating experiences. Customers seek variety, quality, and trust, and that’s where the future of Indian furniture retail lies." - Vijai Subramaniam, Chairman, ROYALOAK FURNITURE

About India Furniture Conclave:
INDIA FURNITURE CONCLAVE is the largest furniture conclave in India where businesses of Kitchens, Wardrobes, Hardware, Residential Furniture, Commercial & Institutional Furniture, Furnishing and material makers converge. It is the only conclave where OEMs, Architects, Manufacturers, Showroom owners, CXO’s and Professionals of the industry come together, making the most significant confluence of the industry to meet.
 

The aforementioned discussion took place at the 3rd Edition of INDIA FURNITURE CONCLAVE, held from February 21-23, 2025, at BIEC.
The 4th Edition of INDIA FURNITURE CONCLAVE will be held from August 21-24, 2025, at Yashobhoomi, New Delhi.