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To grab a slice of modular kitchen and wardrobe businesses, home interior solutions firm Hindware Home Retail plans to tweak its store size. From mega stores offering total home interior solutions, the company is opting for smaller specialty stores that will cater only to two or three verticals.
“Kitchen, wardrobes and entertainment solutions are an essential part of the home improvement. There is a huge aspiration to own modular kitchen and even customised entertainment solution. To cater to this need, we are setting up small format of 1,000-1,200 sq ft, emphasising only these verticals. The stores will offer turnkey services, installation, among others,” Ajay Seth, COO, Hindware Home Retail (HHRPL), the company that owns Evok stores, said.
Seth said the specialty format will offer services to the end consumer as well institutional businesses such as offices, hotels and even realty projects.
Hindware Retail’s mega stores are over 15,000 sq ft and offer over 20,000 stock keeping units in categories such as glassware, home interiors, bathware, furniture, among others. HHRPL entered home assortment retail in 2008 with the launch of Evok Mega Home Stores.
The company, currently, has about six small format stores. Seth said the company is looking to add 18 in next three years through the franchise route. “We will be investing about Rs 30 lakh per store. The aim is to improve our market share from 15-25 per cent in the modular kitchen business by fiscal 2013-14,” he said.
HHRPL had reported a turnover of Rs 86 crore on March 31, 2013. Seth said the company is also looking to add 8-10 mega stores. Hindware Home Retail has 18 mega stores and its main business includes living solutions, modular kitchens and wardrobes and entertainment solutions.
Asked if the company is planning to launch an online format, Seth said the company is still working on the backend infrastructure and may be ready by next year.
On whether the rupee had a bearing on imports, he said the company said had increased prices by 8-10 per cent to tide over costs. He said the company is also looking to commence operations at its parent's company plant in Haryana to do in-house manufacturing of some products.
Currently, the company sources 70 per cent of its products from domestic companies and the balance is serviced through imports.
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