Come 2008 and the modular kitchens market in India will witness many new entrants; apart from existing corporates, tying up with retail majors, to enter into private labels or co-branding arrangements with them, fuelling competition.
Delhi-based stainless steel major Magpie and sanitaryware company Hindware and Bangalore-based V3 Engineers – a big player in office furniture – are among companies looking at entering the segment.
According to industry experts, the modular kitchens segment stands at around Rs 1,500 crore, with Indian readymade kitchens currently sold at the rate of 10,000 units per month in the country. The increasing number of nuclear families, rising disposable incomes, affordability, and easy budget, will drive awareness levels and demand for modular kitchens, which is already growing at the rate of 40% per annum.
Also, the awareness levels of modular kitchens in India is expected to grow 10 times in the next three to four years.
To gain advantage of the growing momentum, Mumbai-based Sleek International has started talking to Future Group for supplying internal accessories for the Spacewood stores within Big Bazaar hypermarkets in India.
Rajesh Ahuja, managing director, Sleek International, told FE, ?We have also recently held discussions with the Neelkamal Group, for either entering into private labels or co-branding arrangements with them, for setting up co-branded retail stores for Indian furniture. We have yet to finalise the exact nature of the arrangement.?
Shopper?s Stop is expanding its Home Stop stores in Vashi and Thane, and Sleek International will supply its modular kitchens to these two new locations as well, Ahuja added.
Reliance Retail is also planning to set up ?Reliance Kitchen? within each of the Reliance Mart hypermarkets being set up across the country, according to Reliance officials. Bella Casa, a new retail venture by the Rajan Raheja Group, too, are planning to foray into the Indian modular kitchens segment.