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R.Y. Narayanan

Plans to open 50 franchisee showrooms by year-end

Coimbatore , Nov. 20

The US-based Kohler Co, a global heavyweight in kitchen and bathroom products, wants to make its Gujarat plant a manufacturing hub to meet the world demand for its products.

The company, which has launched its bathroom products manufactured in Thailand in the Indian market, also plans to have 50 franchisee showrooms across the country by the end of the year.

Speaking to Business Line here, where Kohler recently opened a showroom, Mr Sharad Mathur, Vice-President and Commercial Director of Kohler India Corporation Pvt Ltd, said his company entered the Indian sanitaryware and faucet market a year ago. The Rs 2,000-crore market for these products has been growing at close to 30 per cent annually. The company is present in vitreous china, bath products and faucets. He said Kohler wanted to have about 50 showrooms across the country by December by adopting the franchisee route and it already has more than 22 outlets. It would keep the number of retail outlets at this level till its own plant is established in Gujarat in 2008.

Mr Mathur said Kohler had been focusing on the residential and hospitality segments in India and has been `fairly successful' with what it had done so far. He said based on extensive research done here, the company had developed toilet products specifically for the Indian market with the intention of saving water and it would be produced at its manufacturing facility in Thailand. This product though unique to India would be sold across Asia.

Market share

Asked about his company's market share in the country, Mr Mathur said since it was the first year of operation, Kohler's market share was small. But it was aiming to grow by three-four fold every year.

He said the significant difference between Kohler and other foreign sanitaryware brands was that the company was investing $200 million in its vitreous china plant in India, and was having its supply chain and organisation in place even two years before the plant becomes operational. This way Kohler was placing a long-term bet on India.

Mr Mathur said the company was also looking at kitchens as a big category in India, a product line in which Kohler is present internationally.

Indian plant

Commenting on the status of its plans to have a manufacturing facility at Jagadia in Gujarat, Mr Mathur said the company would produce bathroom products initially on the 280-acre site. It was possible for the company to opt for another site to manufacture kitchen units.

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