Spacewood attracts 'India's first FDI' in furniture industry

CHENNAI: Attracting possibly India’s first FDI in the furniture industry, Spacewood has received a 26% equity stake from Japan’s Sumitomo Forestry, a forestry, housing and timber and building materials trading company.
Through the alliance, Spacewood would increase its retail footprint from existing 15 stores to approximately 50 stores, the furniture company announced on Wednesday.
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.
The company is aiming at expanding its kitchen products and home furniture businesses to manufacturing of wooden interior and building materials.
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 in our industry.”
Itaru Ozaki, general manager, Sumitomo Forestry, said: “We are very excited about Indian market and our partnership with Spacewood and its founders. 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.”