Enters Modular Kitchen Market - India

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

Factory - Central Germany

Area: 110,000 square meters Designs, builds and delivers over 300,000 kitchens Annually Sales: Europe, the Middle East and China

 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

Sales of modular kitchen

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.

Major locations for new residential projects Gurgaon,

Bangalore, Maharastra, Delhi, Ahmedabad.

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

Established in 1994 in Gurgaon

Tie-ups with major builders such as Ansals and Unitech Capacity to produce 10,000 to 12,000 pieces of modular kitchen per day

Sales 60 to 70 kitchen per month Alliance with an Italian company to market polyester coated and stainless steel shutters

Price starts from Rs.100000

COOKSCAPE BY ORCHID DESIGN

Established in 2005 Present in Chennai, Kochi, Hyderabad, Bangalore, New Delhi

Around 25 outlets spread out in South India and New

Delhi

Uses treated and lacquered hardwood and prelaminated marine ply in kitchen units

Prices starts at Rs. 50,000

SIGMA KITCHEN

Established in 2001 Manufacturer of Modular Kitchen cabinets to Indian

Requirement and standards.

Uses both sides laminated & termite resistant exterior Offers a range of products with different sizes and colours.

Prices start from Rs. 80,000.

VENETA CUCINE

Entered Indian market - 1995

via tie up with CC Impex (importer and dealer)

CC India has installed over 6000 Veneta Cucine Kitchen as of last count

They have 20 Boutique in 14 cities like Cochin, Chennai,

Kolkata, Bangalore, Ahmedabad, Delhi etc. 40 different models, with 300 combinations of finishes and

colours

Prices start from Rs. 5,00,000

SCAVOLINI

Entered market via a JV of $200 million with Faber

Heatkraft

Sales 400 kitchen for Dewa Royale, a luxury residential complex in 2010

More than 30 showroom in major cities like Delhi,

Hyderabad, Mumbai etc.

Kitchen ranges from Rs 200,000 upwards

HAECKER

Entered Indian market in 2005 via tie-up with a local distributor Kanu Kitchen Kulture.

Targeted of Rs.100 million in its first 18 months of

operations.

Hacker models on a variety of surface like laminated and

foiled structure and in combination of tempered glass

frames and roller-shutter

Location Mumbai, Cochin, Coimbatore, Bangalore, Delhi Kitchen ranges from Rs. 300,000

Local dealers Godrej Interio

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.

800 dealer outlets 400 more within two years

Tie- up with big builders

Hiranandani Mahindra Life Spaces Raheja Builders Puranik Builders

Set up manufacturing unit at Maharashtra

3rd Largest State in India Largest Power Capacity Pune Manpower available at competitive wages Proximity To Mumbai Raw material: timber is cheap

Fastest growing city

German Pune Connection

City of Entrprenueurs

Real estate market to grow at 25% 6th Highest Per Capita Income

Availability of port: JNPT

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.