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Leading manufacturer of fitted kitchens in Europe Turnover 754 million in the financial year 2008 Over 2,000 employees. Achieved position after 60 years of continuous investment
in technology, R & D
Emerging sector with tremendous growth potential. Largely unorganized with the presence of some local players Market is mostly focused on the urban areas. Drivers : Increasing real estate Growth in organized retail Changing demographic structure & need for customized kitchens
Challenges : Branded modular kitchens are priced high Low replacement demand
Entry of International players players form JV and collaborations Increase in private equity investments and acquisitions Domestic Players International Players
1.21 billion population GDP annual average growth rate of 8.5% in 2011 Consumer durable market size: 2010 300 billion 2015 expected 500 billion Indian furniture market about $8bn Constitute total GDP of 0.5% Highly unorganised sector only 15% is organised sector Organised sector growing at 30% CAGR Key states for wood furniture: Gujarat, Rajasthan, Uttarpradesh, Punjab, Kerela, Andhra Pradesh, West Bengal
Total demand: 10,000 units modular kitchen per month Modular kitchen industry - Worth Rs. 15000 Crores in India Organised sector:15-20% Growth rate of modular kitchen in organised sector is 40% Overall growth is expected to be at 50% YoY. Market segment for high end modular kitchen
Business leaders (Rs. 500000 and above) Self employed / professional / NRIs (Rs 100000-500000)
Market drivers
Increase disposable income Real estate boom Life stlye changes Double salaried families
Dealers/retailers 28% Company showrooms 61% Project sales through real estate developers 11%
Preference for imported kitchen 38% Retail market for Modular Kitchen
Traditionally a market of individual carpenters, working directly with the end customer. Showrooms, usually exclusive, operated via manufacturer
Real estate contribute 5% to Indias GDP Total revenue generated in 2010-2011 is US$ 66.8billion Expected to grow at CAGR 19% between 2010-2014. Of which Tier-1 cities are projected to account for 40% Real estate market expected to touch US$ 180 billion by 2020 Annual demand for residential building to grow at a CAGR of 52.5% by 2014 to reach 22.1 million units.
Investment and trade policy regulation Manufacturing of furniture and kitchens in India is reserved for small scale industries SSI have less than Rs. 10 million in investment Foreign companies can obtain an industrial license:
Import duty Complex multi tiered tariff system consisting: basic duty, additional duty and education cess Duties effectively add 35% to the price of an imported modular kitchen
LISPO
Sales 60 to 70 kitchen per month Alliance with an Italian company to market polyester coated and stainless steel shutters
Delhi
Uses treated and lacquered hardwood and prelaminated marine ply in kitchen units
SIGMA KITCHEN
Uses both sides laminated & termite resistant exterior Offers a range of products with different sizes and colours.
VENETA CUCINE
CC India has installed over 6000 Veneta Cucine Kitchen as of last count
colours
SCAVOLINI
Heatkraft
Sales 400 kitchen for Dewa Royale, a luxury residential complex in 2010
HAECKER
Entered Indian market in 2005 via tie-up with a local distributor Kanu Kitchen Kulture.
Location Mumbai, Cochin, Coimbatore, Bangalore, Delhi Kitchen ranges from Rs. 300,000
Largest Furniture Brand & well recognized brand in India Home and Office Furniture Wide distribution channel: 18 Cities, 800 Dealer Outlets 50 Company Owned Outlets, 45 Franchisees Head Office Vikhroli, Mumbai Contributes 25% of Godrejs Revenue Company has 7 large manufacturing plants in India @ Home mega home store retail outlets 49 regional offices across the country 7 large manufacturing plants in India
Nilkamal
Durian
Furniture
Established in 1981 Home and Office Furniture Pioneers 50 stores all over India ISO Certified Strengths: Ply Wood Head Office: Vile Parle, Mumbai Turnover: Rs. 100 400 Crore (Approx)
Nobilia should enter in India with a Joint Venture with Godrej Interiors as it is a well recognised company has good market in India Godrej Interiors has a wide distribution channel which will help Nobilia to reach every part of India.
City of Entrprenueurs
Real estate market to grow at 25% 6th Highest Per Capita Income
Pricing Strategy: Ranging from Rs. 2 to Rs. 30 Lakh Focus on High-end and Super High-end Segment. As imported modular kitchen are more preferred in this segment.