Evok Expansion

Home and interior decor firm Hindware Home Retail Ltd, which has an interior decor store chain under the brand name ‘Evok’, is aiming to have a turnover of Rs 200 crore by the end of fiscal 2014-15.

HHRL, which is a subsidiary of HSIL also plans to expand total numbers of stores to 35 across the country from its existing 17, said Evok COO Ajay Seth.

“By the end of fiscal 2014-15, we are targeting to have a turnover of around Rs 200 crore. We would also increase our presence to 35 locations from the present 17,” said Ajay Seth to PTI.

Out of that 10 to 15 stores would be on the franchise business model which would sell modular kitchen and modular wardrobes and rest would be the company owned.

Moreover, the company would also invest around Rs 35 crore in capex for expansion of the chain, he added.

The company reported turnover of Rs 80 crore in last fiscal. The company expects that the turnover of financial year 2013-14 would be between Rs 125 to Rs 135 crore.

Its main business includes living solutions, modular kitchens and wardrobes and entertainment solutions.

“We are planning to expand in the Western and Eastern region. The company would soon have a stores in Patna, Kolkata and Guwahati next financial year,” he said, adding that in the first quarter of 2014-15, Evok would open stores at Ahmedabad and Noida.

According to Seth, “Evok is targeting only the premium segment of the buyers and not from the luxury segment. Our customer bases includes urban, semi urban and middle class families.”

The company also plans to expand in tier 2 and tier 3 cities. As per its future outlook, tier 1 stores would be company owned, while stores in tier 2 and below would be on the franchise business model.

“For next five years we have a target of adding 10-15 stores every year, in which 5 to 6 would be company owned and rest would be on franchise model,” Seth said.

EVOK has 17 stores pan India in which 15 are large format stores with floor area of 10,000 sq ft onwards and two small format stores.

The company sources its furniture from globally from Malaysia, China, Europe and India and modular kitchens from Europe and domestic suppliers.



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