 |
 |
||||||
[January 2008]
Massive Investment by Hindware into Home Interiors Retail Business
Hindustan Sanitaryware & Industries Limited (New Delhi, India) has announced its ambitious plans to enter the organised retail sector with a Home Interiors Specialty business. The company has incorporated Hindware Home Retail Pvt Ltd (HHRL) as a subsidiary of HSIL to spearhead the group’s vision to evolve into a Total Home Solutions Enterprise and plans to invest Rs 250 crores over the next five years.
HSIL is diversifying to capitalise on home interiors industry attractiveness in India in the light of growing urbanisation and residential landscapes, changing consumer lifestyles, organised retail sector opportunities and the demand/supply scenarios. The vast home interior solutions market opportunity size is estimated to be US$9 billion plus, with annual growth forecasts of 15%-20% CAGR.
HHRL will leverage the core strengths of the group in understanding diverse consumer and trade behaviour, retail distribution network, brand equity, global sourcing and cost-effective supply chain management, which are critical success factors in this sector. HHRL will also work in close association with architects, interior designers, builders and corporates community utilising the group networks and relationships for retail, institutional and projects business. The pan-India business operations will be built on 'Global Sourcing – Specialty Retailing' model with comprehensive and trendsetting home interior concepts, merchandising and supply chain management systems.
Announcing the foray of HSIL into the home interiors sector, Sandip Somany, Joint Managing Director of HSIL, said: “In the backdrop of ever growing and evolving needs of consumers, home interiors is gaining high significance in terms of concept, time, cost and quality. Consumers aspire their homes to be special providing comfort and upgrading their lifestyle. The core vision of HHRL is ‘to be first choice partner of customers aspiring for Value for Style home interior solutions’ in Living, Kitchen and Bath domains”.
The venture is a brainchild of Sandip Somany and a team of industry professionals with vast experience in this sector have been inducted to spearhead this venture. HHRL plans to invest about Rs. 250 crores over the next five years to establish 50 large format, company operated speciality destination stores across India and set new industry benchmarks in the home interiors sector.
The chain of speciality stores with three different formats covering Living, Kitchen & Bath domains will range from 8000 sq ft to 30,000 sq ft in size and will be launched under the new retail brand EVOK. The venture will focus on the lower mid-segment to mid-upper segment consumer group and aims to attain market leadership in these consumer segments in the near future. The pilot flagship stores will shortly come up in NCR (National Capital Region) and the stores’ showspace will eventually be scaled up to a pan-India retail footprint of 1.2 million sq ft with a target revenue of Rs 400 crores over the next five years.
ENDS