Nilkamal to spread out its @home brand stores

Readymade furniture & home decor firm focuses on tier-I, II cities

BSE-listed Nilkamal, a leading retail store chain of lifestyle furniture and home décor items, is expanding its footprint and plans to launch eight new stores under @home — the mega home store brand — this financial year.

“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.

Post new comment

E-mail ID will not be published
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.

EDITORIAL OF THE DAY

  • Sebi must not be lax in weeding out mutual fund houses

    Last May, capital market regulator Securities and Exchange Board of India (Sebi) amended the Sebi (mutual funds) regulations, 1996, directing all fund

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

Chander Mohan Sethi

CMD, Reckitt Benckiser India

COLUMNIST

Arun Nigavekar

New model for effective education

After interacting with students and teaching community on a ...

Rajgopal Nidamboor

Let the spirit of sport pervade everyday life

Sport, like meditation, is nothing short of a spiritual act. ...

Shona Adhikari

Pop art is truly a feast for the eyes

The internationally reknowned Bruno Art Group’s presence in India had ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture