Hindware Retail In India

New Delhi: Home and interior decor firm Hindware Home Retail Ltd, a subsidiary of HSIL, will invest up to Rs. 300 crore by fiscal year 2014-15 to increase its footprint across the country.

Parent firm HSIL makes sanitary products under brand ‘Hindware’.

“We will invest up to Rs. 300 by next financial year to increase our footprint. We will open company owned and operated mega stores and franchised stores as well,” Hindware Home Retail COO Ajay Seth told PTI.

The company, which sells its product under brand ‘Evok’, plans to open another 8-10 mega stores (spread over more than 10,000 square feet) and is targeting a turnover of Rs. 200 crore in FY15.

The company reported turnover of Rs. 80 crore in last fiscal year.

At present, Hindware Home Retail has 18 mega stores and its main business includes living solutions, modular kitchens and wardrobes and entertainment solutions.

In order to push sales from its modular kitchen vertical, the company would open 50 stores in the next three years through franchise models.

“We are expanding through franchise model to increase our overall footprint in the market. We will open 50 stores in the next three years spread across the country. Modular kitchen industry is not organised but it has huge growth potential. We intend to capture this market,” Mr Seth said.

Modular Kitchen and Wardrobes vertical contributes about 25 per cent to the total turnover of the company.

“Once we open 50 stores for Modular Kitchen vertical, we expect contribution of kitchen business to increase to 40 per cent of total turnover,” he added.

The company is also looking at beginning production at its parent’s company plant in Bahadurgarh in Haryana to replace local sourcing with in-house manufacturing.

At present, Hindware Home Retails sources 70 per cent of its products from domestic companies and rest imports from Europe.

The company is also looking at expanding its business verticals and enter into office solutions segment, Mr Seth said.