Financial Daily from THE HINDU group of publications
Tuesday, May 13, 2003
Financial Daily from THE HINDU group of publications Tuesday, May 13, 2003 |
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Marketing
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Retailing Royal Group plans to expand domestic retail network Sankar Radhakrishnan
THIRUVANANTHAPURAM, May 12 THE UAE-based Royal Group that owns the IndRoyal furniture brand is looking at expanding its retail network in India. Mr J. Sugathan, Chairman, Royal Group, told Business Line that the company was in the process of acquiring the real estate for its own furniture outlets in several South Indian cities including Bangalore, Madurai, Tiruchirapalli, Salem, Kannur and Thrissur. The NRI-owned company already has retail outlets in Chennai, Thiruvananthapuram, Kochi, Coimbatore, Mangalore and Tirunelveli, and a factory at Tenkasi in Tamil Nadu. In the meanwhile, the company has started work on a manufacturing facility at the Kinfra Small Industries Park on the outskirts of Thiruvananthapuram. Involving an investment of Rs 5.1 crore, this factory will be a 100 per cent export-oriented unit, said Mr Sugathan. In fact, this project is among the investments that were announced at the Global Investors Meet held in Kochi earlier this year. The company expects this facility to be ready for production in about six months, he said. The unit will directly employ around 200 people and will also provide indirect employment to another 200-odd people, Mr Sugathan pointed out. The furniture produced by the unit at Thiruvananthapuram will be exported to West Asia, where the company operates a chain of furniture outlets under the `Royal' brand, he said. The company is also looking at expanding its operations to the US and Canada in the near future, said Mr Sugathan. According to him, the company's manufacturing facility in China's Yuhuan province will soon be ready. This venture, which involves an investment of $10 million, will be the company's biggest manufacturing facility and will produce furniture for export to West Asia, Europe and the US, Mr Sugathan said. Commenting on the company's product range, he said furniture based on European designs is extremely popular in India and West Asia too. The company is in the process of expanding its offering in the Indian market, he added. The company is also looking at diversifying into other areas, said Mr Sugathan. It is looking at the viability of launching a retailing venture in the UAE in partnership with a well-known international retail brand, he said. Discussions on this venture are still at the preliminary stage, he pointed out.
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