The $1.5-billion Hansgrohe Group, a German luxury home fittings maker, is looking to expand its retail presence in India, aiming to enter at least 200 cities from around 143 cities now, tapping smaller markets, as aspirations and disposable incomes grow, a top executive said. Christophe Gourlan, executive board member at the Hansgrohe Group, said the company is looking to add around 50 stores annually in its endeavour to grow its retail footprint in the country.
India climbing up global rankings
The company has 300 stores currently with the potential to expand the number to about 500 stores in 3-4 years, he said.The German major is also looking to take India up the pecking order of its global markets in terms of revenue from seventh currently to fifth in about three years, Gourlan said. Germany, China, France, US, UK and Belgium are Hansgrohe’s top six markets.
The company has also appointed Abdulkader Bengali as new India MD, who is expected to drive its ambitions forward in the domestic market, Gourlan added.“India is a bright spot from a consumption perspective. The luxury residential real estate and hospitality markets are booming here. In comparison, China is under pressure and the European housing market is stagnant,” he said.
Local manufacturing push
Thomas Stopper, VP, Asia, Hansgrohe Group, says that the company may also expand local manufacturing as it evaluates opportunities to introduce its global ceramic product designs into India. Known for its faucets and showers, ceramic ware, Stopper says, the brand will help address more needs of consumers in the broader kitchen and bathroom spaces. “We are seeing success for our products that are coming out of our assembly line in Bhiwandi, Maharashtra. There is scope to do more work there with global ceramic designs being integrated into the local supply chain,” Stopper added.
Hansgrohe’s India business, according to industry experts, contributes over 10% to its global revenue. It competes with players such as Roca, Jaquar, Grohe and Kohler in India, with two brands – flagship Hansgrohe that operates at the premium end, and Axor, which is a luxury brand. Price points range from Rs 30,000-35,000 onwards going up to Rs 2 lakh and beyond.