Kolkata-based large appliance and kitchen solution provider, Kutchina, eyes a greater play in the national space by aiming for a larger presence in metros like Mumbai and Delhi along with “big” North Indian cities.
According to Namit Bajoria, Managing Director, Kutchina, national-level expansion plans had been drawn-up in 2019. However, the pandemic put things on the back-burner.
“The supply chain and distribution points were badly hit by the pandemic. Credit periods went up with liquidity crunch being witnessed. However, some improvement is happening now,” he told
In addition to setting up its own manufacturing facility to limit risk from erratic Chinese supplies, the company is upping its own-store presence and distribution network in key markets.
The upcoming manufacturing facility in Kolkata will see an investment of ₹45 crore.
Distribution is being ramped up in the markets of north India including in Punjab, Haryana, Jammu, Delhi and part of Uttar Pradesh, apart from markets in the West that include Maharastra and Goa as well.
Product portfolios have also been segregated region-wise and an entry into South India markets is being looked at in the later phase.
The company had, in a phase-wise manner, expanded into newer markets outside east India with large offerings like chimneys, hobs, and a set of smaller kitchen appliances. It already has a substantial presence in states like Chhattisgarh, Madhya Pradesh and Gujarat.
“July onwards, markets are recovering and there is demand for items like chimneys, hobbs and some large appliances. The initial trends post reopening are encouraging and we feel it is the right time to carry on with our national expansion plans. If the current trends continue and our expansion plans materialise as expected, we will exceed pre-Pandemic level turnover,” Bajoria added.
Kutchina does not share turnover numbers.
Funding options like bringing in PEs or exploring IPOs can be looked at next fiscal “as the economy improves and markets recover”.
Current Trends
Chimneys and large appliances continue to drive turnover for the company, while 18 per cent of its sales is through modular kitchen solutions. Over the next two years, the latter is expected to contribute around 25 per cent of turnover.
Demand for modular kitchen solutions, which have a higher average selling price, is on the rise.
According to Bajoria, down-trading is being witnessed in chimneys with people looking at lower priced offerings. However, volumes are up.