JSW Group has shut down JSW Forma, its furniture business, in less than a year after its grand launch in April 2019.
JSW Living, the holding company of the furniture business, had announced plans of investing around Rs 250 crore over the next five years to become one of the leading steel furniture company and had set itself a sales target of Rs 50 crore in the first year.
JSW Forma had adopted an asset-light model, outsourcing production to two entities in Nagpur and Bhiwandi, on the outskirts of Mumbai. The company’s products which were available at 62 outlets had a starting price of Rs 12000.
A flawed business model and an immature market for steel furniture forced the company to shut down the venture, said a dealer associated with the company. JSW Forma used to take steel from JSW Steel to make products and supply them to the dealers.
The steel furniture business was spearheaded by Tarini Jindal Handa, daughter of steel magnate Sajjan Jindal. Unlike other conglomerates, the JSW Group has never shied away from recognizing a wrong business decision and taking corrective measures before the damage got too big, said sources tracking the group’s investments in recent times.
