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Purvita Chatterjee

MUMBAI, May 3

THE Rs 500-crore Nitco Group is planning to introduce a range of sanitaryware and thereby be the first ones to bring in an imported range in the Indian market.

The group intends importing the sanitaryware products from a company in China and use its own brand to sell in India. Currently the group has five divisions — Ceramic, Mosaic, Marble, Paints and Real Estate — selling all its products under the Nitco brand.

Its sanitaryware business comes under its ceramic division. Speaking to Business Line, Mr Vivek Talwar, Managing Director, Nitco Tiles Ltd, said, "We plan to launch our sanitaryware within the next six months. We will be outsourcing the products from China and marketing them under the Nitco brand."

The products would include wash basins, WCs and bidets. The Nitco range of sanitaryware is expected to cater to the premium end of the market. Pegging the sanitaryware market at Rs 1,500 crore, Nitco expects to get a 10 per cent share in the market with the launch of its brand.

Says Mr Talwar, "We have decided to import the products since it is easier to do so instead of having to set up a separate unit here." At present, the import duty on sanitaryware is pegged at 65 per cent.

Nitco also plans to open 20 exclusive stores across all metros and mini-metros. Currently, it sells through franchisees who also stock products from other companies.

"We intend investing between Rs 8 crore to Rs10 crore on our own showrooms which will be offering all our products from tiles to paints. The purpose is to be perceived as a total flooring and tiles solutions company," adds Mr Talwar.

Staying away from mass media advertising, Nitco believes in reaching out to a select group of people who can influence tiling and flooring decisions during construction projects. Explains Mr Talwar, "We believe in approaching masons, architects and builders directly, instead of targeting the end consumer."

However, once it launches its brand of sanitaryware, Nitco intends to launch a campaign developed by Ogilvy & Mather and has set aside an ad budget of Rs 5 crore.

Besides the company's Web site (Nitcotiles.com), gives its consumers a choice to choose and order the tiles of their preference. Nitco has a market share of 15 per cent in floor tiles followed by a 25 per cent share in mosaic tiles and a 20 per cent share in marble tiles.

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