The Hindu Business Line : Nilkamal Plastics lines up range of new furniture

WITH the moulded furniture market having remained stagnant since the past couple of years, industry leader Nilkamal Plastics thinks that the only way to grow the category is by introducing value adds.

The company, which had launched moulded plastic sofa sets some time back, is now in the process of launching moulded plastic office furniture under the brand name, Novella, as well as storage cabinets and wrought iron lookalike rocking chairs for the home segment.

The company also has its exclusive stores, Nilkamal Home Ideas, in as many as 20 SEC B&C towns, and is planning to set up 15 more stores in the next six months.

Mr Manish Parekh, Director, said: "Even though the market is stagnant both in value and volume terms, we still feel that there is a lot of potential. Therefore, we are trying to penetrate deeper and are appointing a dealer at all towns which has a population of at least 20,000 people."

The size of the moulded furniture market is around Rs 950 crore, 40 per cent of which is unorganised.

Recently, Nilkamal also ventured into large format retail with the launch of its home solutions store @home, which has been positioned as an aspirational mid-market brand.

The store offers furniture, home furnishings and accessories. "We want to position ourselves as home-makers and not a furniture store," said Mr Parekh.

The company has set up stores in Pune, Mumbai, and Ahmedabad, and is planning to set up 27 @home stores in the next three years, for which it is planning an investment of Rs 40 crore.

Though most of the products available at these stores are currently imported, Mr Parikh said, in the coming months the company would be looking at tie-ups with international furniture and home furnishing brands, which would be exclusively marketed through the @home stores.

Also in the pipeline are setting up of full-fledged kitchen and office solutions within the @home stores in the next couple of years under the brand names @kitchen and @office respectively.