Spacewood

About Spacewood

Spacewood Furnishers Pvt. Ltd. operates as a significant manufacturer of modular furniture in the Indian market, positioning itself as a comprehensive provider for both home and office environments. The company was founded in 1994 by Kirit Joshi and Vivek Deshpande, two engineering graduates from Visvesvaraya National Institute of Technology. Their entrepreneurial journey began with a modest investment of Rs. 65,000 in a 2,000 sq. ft. rented workshop with eight workers. Both founders gained relevant industry experience at VIP Industries before launching their venture; Joshi was in the vendor development department for modular office furniture, and Deshpande was in the design and planning department for luggage.

The company's business model encompasses manufacturing and retail of a wide array of furniture, including modular kitchens, wardrobes, bedroom sets, office furniture, and pre-hung doors. Spacewood initially operated as a component supplier and a private label manufacturer for large retailers like Future Group's Hometown. Recognizing the limitations of a private-label model, the founders shifted focus in 2013 to build 'Spacewood' as a standalone consumer brand, which led to the creation of their own retail arm. The company's revenue streams are diversified across multiple channels, including a network of over 1,000 dealers, 34 exclusive brand outlets (EBOs), direct sales to corporate and government clients, and partnerships with major e-commerce platforms like Amazon, Flipkart, and Pepperfry. A key milestone was the strategic partnership in 2015 with Sumitomo Forestry Group, a Japanese building material company that acquired a 26% stake, marking the first foreign direct investment in India's furniture manufacturing sector.

Spacewood's manufacturing operations are centralized in a state-of-the-art factory in Nagpur, spread over 15 acres and equipped with European and Japanese technology. The company produces a substantial volume, including thousands of kitchen cabinets, bedroom sets, and complete kitchens monthly, serving over a million customers. With a reported turnover of ₹525 crore for the fiscal year 2023-24, Spacewood has demonstrated a consistent year-on-year growth rate of 18-20%. The company has announced an ambitious strategic plan to reach a revenue target of ₹1,500 crore by 2029. This growth strategy involves a significant transition towards a direct-to-consumer (B2C) model, expanding its dealer network to 1,000, and increasing its EBOs to 75-100, with a particular focus on penetrating Tier 2 and Tier 3 cities across India.