A major player in the plastic moulded furniture segment, Nilkamal now sets its sights on the burgeoning retail market. If the mention of Nilkamal reminds you of something, it will probably be economical, sensible and stackable plastic chairs and not swish lifestyle stores. But that’s what Nilkamal’s focus has been for a while now, even as it seeks to build a bigger market for its core business of moulded plastic furniture by leveraging these stores. Called @home, the stores are large-format and stock stuff for the house – coordinated furniture for the bedrooms and living rooms, and some home accessories as well, mostly sourced and imported from other companies. Nilkamal has tied up with Sleek, a Mumbai-based modular kitchens company, to equip customers’ kitchens. @home also offers a computerised service for customers to plan the look of their homes with merchandise bought there. “We have an affinity for furniture as that’s the business we’ve been in,” says a smiling Manish V. Parekh, Director, Nilkamal.

Parekh says the company aims to have 38 stores operating by 2010. There are nine outlets so far, spread across Chennai, Mumbai, Pune, Bangalore, Hyderabad, Nasik and Ahmedabad. By March next year, 16 stores would be open, he says — the company has firmed up launches in Coimbatore, Ghaziabad, Faridabad, Surat, Vadodara, Thane and one more in Pune. The Chennai outlet, housed in what was once a marriage hall, is the largest so far, spanning 33,000 sq. ft. Nilkamal has spent Rs 50 crore on the retail business and will invest Rs 75 crore more in the next three years. The funding is a mix of internal accruals and loans, Parekh says. On an average, Rs 2.5-3 crore is being spent on setting up each store, including the deposit, inventory and interiors. Nilkamal, says Parekh, is the top manufacturer of plastic moulded furniture, with 33 per cent market share. According to him, the company has beaten the trend of stagnation in the industry and kept growing in value and volume.

It also makes crates to transport products and materials, and has a 60 per cent share of that market, he said. As for the new business division of retail, Nilkamal expects a Rs 70-crore turnover from its retail business by March 2008. It expects the business to contribute over Rs 350 crore by 2010. The group turnover is expected to touch Rs 750 crore by the end of the financial year. This, coupled with its furniture, accounts for the bulk of the turnover. The company has made a foray into the real estate business but its main focus is its core business of plastics and now, retail, Parekh said. ‘After-sales service will give us an edge’ So far, the stores haven’t highlighted their Nilkamal identity but that’s going to change, Parekh says. How does he expect @home to be different from other lifestyle stores? “Well, our quality and design. The design studio is tailored specifically to deal with Indian homes. And service is the most important factor – we will bring an edge to our business with our service on the shop floor and after sales as well,” says Parekh, adding that Nilkamal’s presence as a corporate will reassure people.

Nilkamal has tied up with ICICI Bank and HDFC bank for customers to avail themselves of personal loans to buy the products on offer. @home aims to be a one-stop shop for everything, barring the bathroom, in the house. It has employed 600 people in its retail venture, an average of 30 to a store. table and chair rentals chino hills caAnd it has already implemented SAP, which most retailers haven’t yet done, claims Parekh.gold chiavari chairs wholesale But will Nilkamal’s business in plastics – which could be called low-involvement – and the ‘economy’ image associated with plastic furniture, press the right keys for its lifestyle business, which comes with associations of aspiration and glamour?cheap recliner chairs adelaide

“No, we’re not afraid of the cheap image rubbing off on the business. We’re also creating corners for our core products at @home outlets but they will only showcase value-added products such as cabinets, wrought-iron style chairs, moulded cupboards, plastic dining tables and such,” says Parekh, adding that the moulded furniture business has much more than chairs to offer.table and chair rentals brea ca Says Jagdeep Kapoor, Chairman and Managing Director, Samsika Marketing Consultants: “@home meets customers needs on three levels: they want readymade furniture, without the hassle of going to a carpenter; nursing chair ikea australiathey want functional, sturdy stuff; bean bag chairs autismNilkamal has very smartly offered a wide range and conveniently located it in malls with good branding and service.

Nilkamal already has consumers’ trust (for its plastic furniture) and there is thirst among them for better home solutions, so trust and thirst will make a good combination.” About five years ago, Nilkamal had initiated a move in this direction – it tied up with its distributors to set up 300-400 sq. ft. exclusive outlets called Home Ideas to showcase its range of plastic furniture. There are 24 such outlets but the company plans to expand. There are 800 main distributors for Nilkamal’s furniture, which is in turn distributed to more than 15,000 outlets. The biggest challenge, Parekh says, is space. Finding the right location is key. And of the malls existent and prospective, he says, “They are called malls but they are actually shopping centres.” In a mall, all the stores would be leased and the management responsible for its promotion and upkeep. Shopping centres are normally smaller in size and shops are sold off to retailers/investors who then have authority to do or sell what they want, which affects the maintenance and management of the place, he explains, adding that the image is at stake.