The Hindu Business Line : `India tops in furniture imports'

INDIA is the world's top furniture importer accounting for 17 per cent of the total imports worldwide in 2004 and up to mid 2005 and retailers expect this to drive future growth.

Organised sector accounts for Rs 800 crore worth of imports with the furniture market growing by 12-15 per cent per annum. The industry in the country is estimated at Rs 35,000 crore. The organised sector forms only 15 per cent of the total, said Mr Liyakat Ali Khan, President, Universal Expositions Group. The group is organising an expo in Mumbai later this year in which apart from the local brands, Malaysian and Milanese brands will also participate.

With the lowering of tariffsthis year, the Government has enabled importers to enter the furniture market and spoil the Indian consumer for choice. With the rationalisation of the import duty at 38 per cent from a high of 300 per cent, a large number of foreign players have forayed to tap the huge potential.

According to a survey by global consultancy firm KPMG, India has emerged as a key FDI destination as foreign investors earn high returns in India than other emerging markets such as China, Brazil and Mexico. Foreign companies will now be able to collaborate with the smaller local companies and take advantage of the rise in demand. "We predict it to be the next big boom," Mr Khan said adding that a business exposition Index International Furniture Fair to be held in Mumbai from October 12 to 16 will attract a large number of leading brands.

Krome, Chennai-based Style Spa, Feather Lite and Moroso will be participating in the fair. Over 45 companies representing Malaysia and China and the Milan-based Federlegno Drredo, a Federation of the Furniture Associations, Italy will be showcasing their range of furniture and lighting.

Mr Khan predicts that manufacturing of some of the international furniture would start in four to five years, with export of certain commodities such as beanbags having already begun.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page