Awfis, a provider of co-working solutions, has expanded into the manufacturing and selling of furniture, a significant departure from its core co-working space business. This move comes after shareholder approval to amend the company's Memorandum of Association to include this new line of business.
Key Highlights
- Awfis starts manufacturing and selling furniture to vertically integrate operations and reduce coworking centre setup costs.
- It will also supply office furniture and décor to third-party clients, diversifying revenue through new services.
According to the company, the goal of the expansion is to use vertical integration to lower the costs of setting up and furnishing its coworking spaces. Awfis expects that internal furniture manufacturing and sourcing will result in significant cost savings and increased operational efficiencies. Additionally, Awfis plans to offer third-party clients complete office furniture and furnishing solutions.
The filing states that the business will have the ability to produce, import, export, trade, and fix any kind of furniture as well as associated goods like woodwork, carpets, rugs, curtains, blinds, glassware, and home décor items.
Awfis is permitted to function as a manufacturer, retailer, wholesaler, stockist, agent, and service provider of furniture composed of a variety of materials, such as steel, wood, plastic, leather, fiber, and others, thanks to the amended object clause. According to the company's disclosure, it also opens up opportunities for ancillary services like cleaning, upholstery, packing, and moving.
Also Read: TCS Reports 3% Revenue Fall in Q1, First Decline in Four Years
Awfis' revenue in the most recent quarter (Q4 FY25) was Rs 340 crore, up 47% year over year from Rs 232 crore in the same quarter the previous year. Its profit rose eightfold to Rs 11.2 crore in the same time frame. The company reported Rs 1,208 crore in revenue and Rs 68 crore in profit for the fiscal year FY25.
Awfis is currently trading at 644.20 (as of 10.41 AM) and has a total market capitalization of Rs 4,593 crore ($540 million).
