Interno Fusion Unlisted Shares

About Company

Interno Fusion, a leading modular furniture manufacturer in India, began with a passion for personalized furniture and now serves residential, retail, hospitality, and institutional sectors. With 12+ years of experience, 500+ employees, and 100+ showroom partners, it operates four factories spanning 1.36 lakh sq. ft. across Manesar and Farukhnagar. The company dispatches over 7,800 kitchens, 12,400 wardrobes, and 6,200 doors annually, processing 3.2 lakh wood boards each year. Holding a GreenCo certification, Interno Fusion emphasizes sustainability and innovation. Backed by ₹98 crore revenue in FY24, projected to reach ₹210 crore by FY26, it is North India’s largest omni-channel interior furnishing brand, well-positioned to benefit from India’s rapidly expanding modular furniture market.

Business

• Modular furniture manufacturer — kitchens and wardrobes — with ~2 lakh sq. ft. of manufacturing capacity.

• Positions itself as North India's largest organised player in the segment.

• Operates primarily as a B2B/contract manufacturer rather than a consumer-facing brand.

Revenue & customer profile

• FY24-25 revenue: ~₹65 cr. FY25-26: ~₹57 cr — a decline of roughly 12%.

• Key customers: HomeLane, Livspace, and Asian Paints' kitchen brand.

• The FY26 fall is attributed to Asian Paints scaling back orders.

• Concentration risk is the central issue: most revenue comes from three clients, and the loss of volume from one produced an immediate ~₹8 cr hit. This is the structural vulnerability of being a supplier to platforms rather than owning the customer.

Capital structure

• Raised ~11 cr in 2024 at a ₹37 cr and 71 cr market cap , deployed towards debt reduction and new machinery.

Growth triggers

• New CEO with a technology background hired recently; in ~6 months has driven significant automation.

• Factory now digitally controlled end-to-end — quotation, order booking, and supply are all tracked on system. Focus on operating efficiency.

• Strategic pivot to builder/institutional tie-ups — moving away from dependence on interior-design platforms.

• Order wins: ₹50 cr from NBCC, ₹10 cr from reputed builders. Combined ~₹60 cr, roughly equal to a full year of current revenue.

Capacity & expansion economics

• Existing plant can support up to ₹120 cr topline — the two-year target, implying ~45% CAGR off the FY26 base.

• Beyond that, a new ₹100 cr-revenue plant requires only ₹10-12 cr capex, i.e. an asset turn of roughly 8-10x. Capital-light expansion is the key attraction.

Monitorables

• Execution timeline on the NBCC order — government/PSU orders often stretch, and receivable cycles with builders are typically longer than with platforms.

• Whether the builder channel scales beyond these initial wins, or remains lumpy and project-dependent.

• Margin trajectory: does automation translate into visible operating leverage as revenue recovers, or was it merely cost defence during a down year?

• Whether the Asian Paints volume returns, and what replaces it if not.

• Working capital intensity as the mix shifts toward institutional clients.

Summary view The thesis rests on two legs: a capital-light path from ₹57 cr to ₹120 cr using existing infrastructure, and a customer-mix shift that reduces platform dependence. The FY26 decline demonstrates precisely why the second leg matters. The order book gives visibility; conversion and cash conversion are what to verify.