German luxury bath and kitchen maker Aloys F. Dornbracht GmbH is piggybacking its growth on the booming real estate segment in India.
The company, with its newly formed subsidiary, has said that both residential and institutional sales will form core of its business strategy for the domestic market.
“The real estate segment is booming and we see an opportunity for growth here. A slew of international hotel chains are looking to make a foray into India and through our association with them, we will make our presence in the domestic market as well,” Mr Kubber (Director-Global Sales), Aloys F. Dornbracht GmbH, said.
He said the highest growth for the brand is coming from Asia Pacific. As a result the company has set up four offices in the region including in Mumbai, Shanghai, Hong Kong and Singapore. Dornbracht has presence in 14 countries and the group recorded a net turnover of €164.8 million in 2011.
Speaking on its Indian market, he said there is a growing appetite for luxury brands. “We have taken the dealer route to expand. We have 12 stores and hope to increase the number to 20 soon.” Also, the company will be expanding through the shop-in shop model.
The overall sanitary ware market in India is estimated to be Rs 850 crore and is growing at a rate of 30-40 per cent annually. In India, the premium range is catered by players such as Hansgrohe, Villeroy & Boch and Roca among others. In the mid-bracket, players such as Hindware and Somany operate. The rest of the market is catered by the unorganised segment.
Dornbracht will operate in two segments – retail business and the institutional sales. “Bulk buyers and institutional sales are extremely important to us and we are betting big on three aspects of the brand — glamour, service and experience,” Mr Kubber added.
The company will be importing its bath and kitchen range from Germany. “We are not looking at setting up a manufacturing range. Our brand is still very niche,” he added. Dornbracht's products are priced between Rs 1 lakh and Rs 50 lakh.