New Delhi, Jan 16: Foraying into home interiors sector, Hindware Home Retail Private Ltd (HHRL), an arm of Hindustan Sanitaryware and Industries Ltd (HSIL), today said it will invest Rs 250 crore to open 50 stores across the country.
The fledgling home interior solutions market is estimated to be nine billion dollars plus, with annual growth forecasts of 15-20 per cent CAGR. ''HHRL plans to invest about Rs 250 crore over the next five years to establish 50 large format, company operated specialty destination stores across the country and set new industry benchmarks in home interiors sector in India,'' HSIL Joint Managing Director Sandip Somany told reporters here.
The company now targets a revenue of Rs 400 crore over the next five years.
He said the chain of specialty stores with three different formats covering living, kitchen and bath domains will range from 8,000 square feet to 30,000 square feet size, and will be launched under the new retail brand EVOK.
These stores will showcase world class contemporary products in furniture, furnishings, bath products, modular kitchens, flooring, lighting and lifestyle home accessories sourced and coordinated from across the world.
The venture will focus on the lower mid-segment to mid-upper segment consumer group and aspires to attain market leadership in these consumer segments in near future.
Mr Somany said the pilot flagship stores will shortly come up in National Capital Region (NCR) and the stores' population will eventually be scaled up to a pan-India retail footprint of 1.2 mn sq ft with target revenue turnover of Rs 400 crore over the next five years.
He also said HHRL will also establish its ambitious projects business to service the architects, builders, interior designers and corporate/institutional segments with comprehensive product mix and services.
HHRL will leverage the core strengths of the group in understanding diverse consumer and trade behaviour, retail distribution network, brand equity, global sourcing and cost-effective supply chain management, which are critical success factors in this sector, he said.
With a dominant market share of 40 per cent in the industry, the city-based HSIL's operations are supported country-wide by eight regional offices, 18 depots and more than 2,000 employees.