Hardware specialist Laxmi Metal Works is eyeing the markets of Punjab, Rajasthan, Maharashtra and West Bengal for its next stage of expansion. “At present we have a good dealer base in the southern states – Tamil Nadu, Karnataka, and Andhra Pradesh; and in the states of Madhya Pradesh, Gujarat and Uttar Pradesh. However, to meet our long-term objective, and to create a sustainable business we need to expand,” shared Amit Garg, partner in the company. He said that at present Laxmi Metal Works has over 250 dealers and two distributors.
“In 2018 we want to add over 100 dealers and expand our business network. We have figured out the states of Punjab, Rajasthan, Maharashtra and West Bengal for the next leg of expansion,” informed Garg, adding that not only dealer base but the company is simultaneously looking to add to its distributors and the beginning could be made in these states. Multi-brand outlets will be the preferred mode of dealer expansion, he said.
“Not only the Indian market, we are also looking at the markets of our neighbouring countries Nepal and Bangladesh to expand our horizon,” informed Garg, as he shared the company’s global aspirations.
The company’s mortice locks are in great demand, he said adding that they are expanding the product range and are all set to introduce door closers and main door locks. As the company seeks to appoint new dealers it will emphasise on payment terms and conditions, and minimum stock value. He shared that at present dealers are required to stock products valued at Rs 1.5 lakh.
“Lakshmi Metal Works offers its business associates turnover discounts on a yearly basis, advertising materials, trade fair participation, and more importantly product-based training,” shared Garg. The trade margin, he said, is in the range of 20-25%.