Nilkamal to spread out its @home brand stores
Aug 22 2011 , Pune
Readymade furniture & home decor firm focuses on tier-I, II cities
“The readymade furniture and home decor market is growing rapidly and we want to tap this segment by launching a total of eight more new stores in tier-I and tier-II cities this financial year,” Hiten Parekh, executive director, Nilkamal, told Financial Chronicle. “All these eight stores will be company-owned, with a total investment of over Rs 25 crore,” he said.
At present, the Rs 1,500-crore company has a total of 18 company-owned outlets under @home brand across 13 cities. The stores, each up to 20,000 sq ft in size, competes with the lifestyle furniture and home decor retail chains such as Home Town, Home Centre, Godrej Interio and Tangent.
Under its new expansion focus, the lifestyle furniture and home decor retail chain last week opened its third 15,000 sq ft store at Amanora Town Center, Hadapsar in Pune.
Parekh said after opening its first store in Kochi in the first quarter, the company will open its second store in Hyderabad and a third one in Bangalore this financial year. “Four more stores are also planned in this financial year and we are talking to property owners in Delhi, Chennai, Jaipur, Ludhiana and Chandigarh,” he said. Parekh said each store required an investment of Rs 3-4 crore.
Parekh said the demand for such stores was increasing with the increasing number of new home buyers and professionals who have little time and seek readymade solutions for their homes and offices. “We are a one-stop shop providing solutions for all kinds of offices, homes, bedrooms, dining rooms, living rooms, interior decor, vases, flowers, curtains, beds and mattresses, bed covers and sheets,” he said. The stores sell sofa sets for Rs 19,900 upwards, dining sets Rs 7,500 upwards, bedroom sets Rs 45,900 upwards and home accessories Rs 30 upwards.
The company has its own 17-member design centre in Mumbai. “We are a preferred destination because of our superior design and styling because our products are manufactured both in India and abroad,” Parekh said. “Before they place the order, we help our customers see how the chosen items look in 3D. Every store has the software to help clients to plan the layout and interiors of their homes and offices,” he said.
He said on an average the firm’s stores were breaking even within three months of operation and made profits from the fourth month. He said the retail home furniture, offices and interior decor market size was about Rs 25,000 crore out of which Rs 6,000-7,000 crore was in the organised sector. Parekh said the sector was growing at 25-30 per cent per annum.