On September 27, 2024, Forte Furniture Factories ended its involvement in Forte Furniture Products India Private Limited (FFPIPL) by selling its 50% stake in the company. The shares were sold to Indian Furniture Products Limited (IFPL). This marks the end of a joint venture between Forte and the ZUARI Group that began in 2017.
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FFPIPL was primarily engaged in furniture production and sales, with its operations relying on production facilities and a sales network in India, as well as technical know-how provided by Forte. However, FFPIPL failed to deliver the expected economic results, and the partners saw no future prospects for growth or profitability.
This lack of success was exacerbated by challenges including a rise in raw material prices, the impact of the COVID-19 pandemic, limitations on chipboard availability, and increasing wage demands.
The termination of the partnership is expected to positively affect Forte's financial results, contributing around PLN 5 million to the company's bottom line. Forte's management emphasised that this decision would enable the company to focus on key markets without affecting its production capacity or future growth plans.
Source: www.biznes.meble.pl