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Fu r n it u r e MARKET &OPPORTU NITIES


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Fu r n it u r e MARKET &OPPO RTU NITIES

C ONTENT S

In troduction 2

Indian Furniture Industr y 3 A ppendix 11

A report by KPMG for I B EF


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2 MARKET & OPP ORT UN IT IE S

In tr oduc tion

The global furniture market can be broadly ca t egor isedinto four categories - domestic fur nitur e , office/c or pora t efur nitur e , hotel furniture and furniture parts . Globally ,domestic furniture accounts for 65 per cent of the

production value , whilst corporate/office furnitur erepresents 15 per c en t , hotel furniture 15 per cent andfurniture parts 5 per c en t .

According to a World Bank study , the or ganisedfurniture industry is expected to grow by 20 per cent ever yyear . A large part of this growth is expected to come fr omthe rapidly growing consumer markets of Asia, implyingsignificant potential for growth in the Indian fur nitur e

sector .

15%

Global Furniture Market

5%

15%

65%

n Domestic n Office n Hotel n Parts

Source: KPMG Analysis for IBEF


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F U R N I T U R E

Indian Furniture Industr y

As of 2006, the Indian furniture market is estimated to beworth US$ 7,922 million. Of this , wooden furniture ac coun ts

for US$ 1,358 million. About 11 per cent (US$ 152 million)of this (wooden furniture) is imported and imports ar egrowing at 50 to 60 per cent every year . India was thelargest furniture importer in the world in 2004-05, with a 17

per cent share in the furniture imports w orldwide . A total of

10, 476 importers shipped furniture to India during this per iod , mainly from Italy, Ger man y, Spain, China, Korea,Malaysia, Indonesia, Philippines and Japan.

Share of Or ganised and Unorganised Sec tors (US$ Billion, Percentage Shar e)

1.2, 15%

Furniture Conc epts , Furniturewala, Zuari, Truzo, N R Jasani &

Compan y, V3 Eng ineers , PSL Modular Furnitur e , et c. The range of indigenous furniture available in India,

includes both residential and contract system fur nitur e .Manufacturers in India usually use a three-tier sellingand distribution struc tur e , comprising of the distr ibut or ,wholesaler and r etailer . The market is mainly c onc en tra t edin A, Band C category cities (the top 589 cities). Aand B t ypecities together constitute 33 per cent of the total market .With a healthy economy and increased household andinstitutional spending , the market is growing steadily .

FURNITURE INd USTR y C OMPOSI T ION

As with the global market , home furniture is the lar gestsegment in the Indian furniture market , accoun tingfor about 65 per cent of furniture sales . This is f ollow ed

b y, the office furniture segment with a 20 per cent shar eand the contract segmen t , accounting for the r emaining

15 per c en t .

6.8, 85%

C onsumer Seg ments

n Unorganised n Organised

Source: KPMG Analysis

15%

The furniture sector in India makes a mar g inalcontribution to the Gross Domestic Product (GDP),representing about 0.5 per cent of the total GDP. The major

part of this industr y, approximately 85 per cent is in theunorganised sec t or . The remaining 15 per cent comprises of

large manufac tur ers , such as , Godrej & Boyce Manufac tur ing Co. Lt d., BP Ergo, Feather lite , Haworth, Style Spa, Yantr a,

20%

65%

R enaissanc e , Millennium Lifestyles, Durian, K ian, Tangen t , n Household n Office n Contrac t


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Home furnitur e

Home furniture in India is available in a wide r ange ,to

cater to different customer needs . A typical middle class

urban Indian home has five rooms (including kitchen and bathroom). About 25 per cent of the urban populationlive in homes with five rooms or mor e , while 45 per c en t

live in houses with three rooms or less . About 16 percent is estimated to live in single-room homes . The t ypeof furniture used depends on the customer s affluenc eand tast e .

The r ich and upper middle class is typically ver y a tt en tiveto design and qualit y, so price is rarely a determining fac t or .In gener al, Eur opean style furniture is only found in homes ofthe urban upper class. Demand for furniture of in t er na tionalstandards is limited to the larger cities. It is also estima t edthat the wealthier classes do not change furniture veryfr equen tly; the average life of a piece of furniture is about

20 years and some craf tsmen s pieces are used for as long as 50-70 years . Colonial furniture is still very common in India,

but the trend seems to be declining slo wly.

Office Furniture

The office furniture segment caters to the commercial andoffice spac e . This segment has witnessed rapid growth in

recent years , in line with the growth in the Indian econom yand subsequent demand for office spac e . The thrust on r ealestate and office construction is expected to sustain in thenear futur e , indicating continued growth for the fur nitur eindustr y.

Con tr ac t segment

The contract segment caters primarily to hotels and its

growth is consequently linked to growth in tourism anddevelopment of new hot els .

Ther e are around 1,200 hotels in India in the or ganisedsec t or . More than 10 per cent of these are in the 5-star andabove categories (please refer to table below for details).

C a tegor y - wise Availablity of Hotel Rooms

Star C a tegor y No. of H otels No. of Rooms 5 - Star Deluxe 97 21,314 5 - Star 82 9,505 4 - Star 114 7,606 3 - Star 427 19,164 2 - Star 181 5,148 1 - Star 52 2,682 Heritage 85 3,445 3 - Star Apartment Hotel 2 110 4 - Star Apartment Hotel 1 44 5 - Star Apartment Hotel 1 100 Silver Incredible India Bed & Breakfast Establishment 2 6 Gold Incredible India Bed & Breakfast Establishment 3 6 To be classified 122 7,657 Total 1,169 75,787

Source: Annual R epor t 2006-07, Department of Tourism


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F U R N I T U R E 5

,919

3,458

Tour ism in India is growing at a robust pac e . The numberof foreign tourists has increased over the last three years , as

indicated in the figure belo w.

Malaysia and Myanmar . It also imports MDF (Medium Density Fibreboard) boards from Eur ope .

Raw Material U sage

For eig n Tourist Arrivals

2006 4,447 10%

2005

2004

0 1,000 2,000

(000s)

3,000 4,000

CAGR 13.4%

5,000

25% 65%

These trends indicate significant potential for growth inthe contract furniture segmen t .

To sum it up , the furniture market in India is growing onstrong fundamen tals , with demand drivers likely to sustainover the medium term. At the same time , the supply side isalso encour ag ing , as India has sufficient availability of key

raw materials that are used as inputs for furniture mak ing . W oo d

n Wood n Metal n Plastic

FURNITURE INd USTR y VAl UE C H AIN

The Indian furniture industry covers the entire gamut ofac tivities , from sourcing , manufacturing and distribution,to sales and after sales .

In the Indian con t ext , players are actively engaged ineach of these ac tivities .

Var ious types of raw materials are used for fur nitur emaking in India. The key raw materials include w ood , metaland plastic , with bamboo and cane also being used insome cases .

Wood accounts for nearly 65 per cent of all fur nitur emade in India. This includes several types of indigenouswood , as well as imported w ood . India imports w ood

from various South East Asian countries such as Indonesia,

India abounds in several tree species whose wood is used forfurniture mak ing . Apart from indigenous material available

in India, some types of wood are also impor ted , in case the

domestic supply is inadequa t e . Popular wood types usedin India include Walnut , Sandalw ood , Teak, Sheesham,Deodar , Ebony, R edw ood , R osew ood , R ed Cedar and Sal.Teak accounts for almost 50 per cent of the total w oodenfurniture produc ed , Sal and Deodar account for about

20 per cent and the balance includes Mahogan y, Cedarand other tree t ypes . Bamboo Material Boar ds (BMB) ar eincreasingly being used in place of plywood . India also has

abundant rubber wood supply . Natural rubber plan ta tionscover 520,000 hectares with an additional 6,000 hectares

being replanted almost every year since 1994. The souther nstate of Kerala produces 95 per cent of the total supply of

rubber wood in India. Although furniture making as an

Or ganised Sector Value C hain

Suppliers Manufacturers

Wholesalers R etailers

Impor ters


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activity is spread across the length and breadth of India, afew centres have become famous for their exquisite carving ,

inlaying , turning and lac quer ing . Indian states well k no wnfor woodwork include Gujar a t , Jammu & K ashmir , Punjab ,Uttar Pradesh and Kerala.

India is one of the largest consumers of wood in SouthEast Asia. The country has sufficient availability of tr opicalwood , ho wever , in recent years , growing concerns aboutthe environment and the need for conservation of f or estshave led to reduction in the supply of w ood .

India imports wood from various countries like Malaysia,Indonesia, Myanmar , and Ivor y Coast , et c. MDF boards ar eimported from Eur ope , soft and hard wood are impor t edfrom Russia and other South East Asian coun tr ies. Veneered

panels are becoming increasingly popular in India and ar eimported from the Eur opean Union and USA.

towards imported fur nitur e . Eur opean furniture manufacturing companies ha ve

been the first en trants , with their premium products(mainly veneered) in India. They were led by the K KBirla

joint ven tur e , Gautier , with Groupe Seribo of Fr anc e .Furniture imports from other Asian countries have c omein much lat er . Barring a few, such as , R enaissanc e Home ,In t er ior Espania, Pinnacle Saporiti and Gautier , most of theimported furniture dealers sell their products either undertheir own brand name or without any branding . In r ec en t

times , import of cheaper furniture from South East Asiancountries has been incr easing .

Furniture Imp or ts into India

2005-06 152.43

2004-05 92.79

domestic Manufacturing

Furniture manufacturing is driven by the designs chosen,the inputs which come from in-house designers andmarket f eedback . Manufacturers consider several aspects

2003-04 58.00

2002-03 32.93

2001-02 20.93

CAGR 64%

related to the customer (demog r aph y, lifestyle, motiv ation

and aspiration, needs and preferences), raw ma t er ial(type , quantity and availability) and internal capabilit y

(expertise , quantity and availability of labour , production

0 50

d istribution

100 150

US$million

200

process complexity and delivery time) for dev elopingdifferent designs , which in turn, determine the fur nitur e sfunc tionalit y, look and feel and value .

Furniture produced in India falls into two br oadca t egor ies , depending on the end user ; domestic fur nitur emeant for home use and commercial furniture mean t

for the office and hospitality sec t ors . Domestic fur nitur erepresents almost two-thirds of the total output . The keysuccess factors for each category vary. Manufacturers in thedomestic sector typically try to differentiate on the basisof design variety and pr ice , while in the commercial spac e,having a strong and reliable brand is impor tan t .

Imp or ts

Furniture imports in India have been growing at nearly 64 per cent CAGR, over the 5-year period from 2001 to 2006.

A key driver is the increasing demand for fur nitur e , fuelled

by the boom in housing and commercial c onstruc tion.Increasing income levels and influence of global lifestyletrends have also led to many urban, affluent Indians , mo ving

Indian furniture companies operate both, through dir ec t

selling in the market and distr ibut ors . Companies with alarge local customer base normally sell dir ec tly, withoutinvolving distr ibut ors . The larger companies typically ha vetheir own commercial offices and showrooms in all thelarger cities in India. Many organisations pr ef er , ho wever , t o

operate via organised outlets .

For projects of large volume , companies typically selldirectly to the customer - the primary customer is of t enthe specifier (ar chit ects , builders or project managers) or

building owners/lessees who are responsible for fitting

out buildings and offices. Armed with the choice of localand imported products , these purchasers exert significan t

influence on the sec t or .

R et a ilers

Ther e are a large number of furniture retailers and

franchises spread across the c oun tr y. While the majority ofretailers are small in size and scale , large retailers usually

operate in urban markets . One-stop shopping chains for


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F U R N I T U R E 7

8.8

home building solutions have come up in large cities ,such as Arcus in Gurgaon and KSS Home Pro in Bangalor e .

Another development has been the emergence of specialt yfurniture chains , such as , Usha Shriram Furniture Industr ies ,OCL,Pace Furnitur e , Indoors and R enaissanc e Home .

With the rapidly growing and transforming retail sec t or ,it is expected that the large retailers will continue to expandtheir presenc e , leading to consolidation in furniture r etailingin urban markets .

Consumers and Key I nf lu encers

The decision making process in buying home furniture islargely influenced by the owner and the family at lar ge .

C hanging consumer demo gr aphics

Inc ome levels in India have been growing rapidly over the past decade and this trend is expected to con tinue . This

has led to an increase in the number of middle class andaffluent households- the number of households of the r ichand consuming segment has more than doubled bet ween

1995 and 2005. Average household income in urban ar eashas grown at a CAGR of 5 per cent over the past decade .By 2010, the higher income earning group (>US$ 2,000)is expected to constitute 48 per cent of the total earning

population in India.

Number of H ouseholds of Rich andC

onsuming C

lass

architects are frequently c onsult ed , for selecting all aspects 2005-06 80.7

related to in t er iors , including fur nitur e . Upwardly mobile 2001-02 49.0

furniture and frequently employ interior designers , t osuggest/choose the right fur nitur e .

1995-96

0

33.7

20 40 60 80 100

A major factor that has propelled the growth in theimported furniture market is the increasing exposure ofIndians to global trends and lifestyles. Such exposur e ,

coupled with increased disposable inc omes , has causedmore and more urban middle class consumers to hire theservices of interior dec or a t ors , for doing up their houses .To sum it up ,

While decorating a new house: The buying decision is lef t

to a builder/architect/interior decorator or the owner

While renovating a house: The buying decision is made b yan interior designer or by the owner

While furnishing a commercial complex: The buyingdecision is made by the builder/archit ect/in t er iordesig ner

K E y d E MANd d R IV ER S

Steady growth in the Ind ian economy and the c onsequent

rise in living st and ar ds, have been key influencers on dema ndgener at ion in the Ind ian furniture indu st r y. The three keydrivers that have had a significant impact on the sector ar e :

1. Changing consumer demog r aphics

2. Real estate/housing boom

3. Tour ism and hospitality industry g r owth

US$ million

Coupled with this is the increased propensity to spend

on lifestyle and consumer products , driven by trends likeincreasing number of double income families, incr easedease of financing for consumer durables and incr easedexposure to global products . All these factors have had a

positive impact on the furniture sector and are expected t odrive demand for furniture in the futur e .

Real estate/housing b o om

The growth in the Ind ian economy has also had a p osit iveimpact on the growth of real estate and commercial p r o pe r t ies

in Ind ia. Ther e has been all-round growth in b o t h, t hema nu f act ur ing and services s ect or s. In p ar t icular , the gr owt hin the services s ect or , which now c onst it u t es more than t he

50 per cent of the GDP, has led to rapid develo p men t in t herealty sector in Ind ia, as the growing K PO/ BPO sector c r eat es

Real E sta t e d e velopmen t

2005-06 112.0

2003-05

90 95 100

US$ billion

105 110 115


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demand for const r uct ion of new office s p ace.

The real estate sector has grown from a US$ 98 billion

industry in 2003-04 to US$ 112 billion in 2005-06. Whilehousing constitutes a major part of real estate in India,commercial construction has also been g r owing , in or der

rooms would be required to cater to the needs of travel andtourism. The furniture industry would benefit through the

subsequent demand for hotel fur nitur e . Tourist Visits to Indian Sta tes

to cater to the increasing demand for office spac e . Thecumulative demand for office space in 2005-2008 is

estimated to be in excess of 85 million square f eet , up fr om

16 million square feet in 2004. Growth in both, housing and commercial developmen t

will have a positive effect on furniture demand , driven b y

2006

2001

1996

0 100

145.15

200

241.91

300

CAGR 12.5%

400

472.56

500

the need to furnish new c onstruc tions .

Tourism and hospitality industry gr o wth

Tour ism in India has been increasing rapidly and st eadily

over the past decade . The number of tourists (domestic andforeign combined) to visit all states in India g r ew , from 145.1million in 1996 to nearly 472.5 million in 2006, at a CAGRof

12.5 per c en t . It is expected that demand for tourism willgrow at 8.6 per cent between 2006 and 2015.

This would create significant demand for hotel r ooms . It is estimated that by 2010, an additional 125,000 hot el

US$million

CR I T I C Al SUCCESS FACTORS FOR F UR NI T UREMANUFACTURERS IN INd I A

The Indian furniture industry is gradually transforming into amore organised and competitive sec t or . The entry of global

brands in the sec t or , emergence of large retail players andthe resultant consolidation, are trends that highlight this

tr ansf or ma tion. The figure below captures the current status of the

Indian furniture sec t or

Thr ea t of New En tr an ts

Fragment ed industr y

Growing domestic mar k et Industr y is not investment int ensive

Supplier Po wer Abundant supply of raw mat er ials

and labour

Supplier base not or ganised Impor ts getting easier

C ompetitiv e R ivalr y

Moderately competitive industr y

Transitioning fr om highly unorganised to organised sector

Cust omer Po wer

Increasing demand fr om k eyuser segments

Demand for lifestyle pr oduc ts

Majority of the mar k et still price sensitive

T hr ea t of Substitut es

No significant thr eat

Source: KPMG Analysis

n High n Medium n Low


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F U R N I T U R E 9

These trends indicate certain key capabilities tha t

companies in the furniture sector need to develop for

suc cess . They are briefly discussed belo w :

Good supply chain managemen t

Supply chain management is critical for fur nitur emanufacturers for catering to both, the home andcommercial segments . For the home segmen t , the challengewould be to cater to India s diverse customer needs and aspread-out market , without adding to inventory or c osts .

In case of the commercial (office and hotel) segmen t ,the key requirement would be to ensure timely deliv er ies ,as per required specifications to the builder or archit ec t .

Cost Minimisa tion

Furniture manufacturers in India will need to cater to div ersetastes and preferences across customer segments and

geog r aphies . At the same time , with the industry gettingincreasingly organised and c ompetitiv e , margins are likelyto be progressively under pr essur e . In this sc enar io, theability to manage costs through improved manufac tur ing

processes and minimising waste is a key capabilit yrequirement for players in this sec t or .

Brand Management

Branding has become a significant factor in fur nitur e buying in India in recent years . Having a well-known br andis important for catering to the office and hotel segmen t ,as these typically buy in large volumes and expect thefurniture to complement or enhance their own br and .

However , even individual buyers in the home fur nitur esegment are increasingly looking at branded products , as ameans to ensure quality and value .

C ustomisation

Furniture manufacturers need to be able to cust omisetheir products to meet different customer needs , whilemaintaining their cost c ompetitiv eness . This could bea challenge , especially in the home furniture segmen t ,where the volumes for specific designs are likely to be low .

Practices like mass customisation, where there are productswith standard shapes and sizes with customised ext er iorsand colour shades , will need to be implemen t ed . Accur a t e

demand forecasting is a related capabilit y, required to planfor raw materials and parts .

OPT IONS FOR ENTERING THE INd I AN F UR NIT URE

MA R K ET

Attractive segments

The Indian furniture market offers attractive growth optionsfor multinational players looking at entering the Indianmarket . As mentioned ear lier , import of furniture into Indiahas been growing at nearly a 64 per cent CAGR, indica ting

strong demand for global products in the Indian market . The office furniture segmen t appears the most a ttr ac tive,

as it is growing rapidly and also offers large volumes . It is

estimated that the demand f or office space in India will gr ow

at a CAGRof 20 per cent over the next 3-5 years . Apart fr omthe demand for creation of new office spac e , the demandfor office furniture is also driven by renovation of existingoffices. This segment is also relatively price sensitive andlikely to go in for well-known brands .

Another potential segment is high-end home fur nitur e ,

catering to the upper middle class and affluent ur banhouseholds . Home furniture is the biggest segment interms of volume and with the number of such householdsincreasing at about a 10 per cent CAGR, it offers good

potential for in vestmen t .

Global players can enter India, either on their ownor through joint ven tures . Given the market size andcomple xity, successful global companies spend significan t

time in studying and understanding the Indian marketthor oughly , before making significant in vestmen ts . Somecompanies have established liaison/representative offices

as an intermediate step before entering on their own orthrough a joint ven tur e . Typically, the liaison office is notallowed to undertake any business activity in India. Therole of such an office is to gather information about the

possible market opportunities and provide inf or mationabout the company and its products to prospective Indiancust omers . A liaison office in India is permitted to carry outonly specified activities and the permission for the same isgiven for a period of three years . This may be extended fr omtime to time .

An example of such an approach is Teknion. Tek nion

starget market includes Fortune 500 companies and majorIndian corporate houses .


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1

MARKET & OPP ORT UN IT IE S

MNC furniture company in India - Teknion

Tek nion initially established a liaison office in India andthe c ompan y s operations were focused in Chandigar h,

Hyder abad , New Delhi, Mumbai and Bangalor e . Pr esen tly,Tek nion employs two permanent employees for itsoperations in India.

It has an after-sales service function that includesreconfiguration and new or ders . The firm also employs subcontractors for installation of its furniture solutions . Tek nionimports furniture from its Malaysian opera tions .

Pr esen tly, Tek nion s aim in India is to establish itself asa leading designer and promoter of high quality model

furniture solutions . For this , the company intends to tar get 10 per cent of the total furniture market by establishingrelationships in India and networking with theserelationships to reach the targeted companies . Tek nion also

plans to establish a new showroom and a joint venture withIndian distr ibut or .

In the longer term, Tek nion plans to maintain anassembly unit with standard furniture and standard produc t

r anges .

K E y TAK E -AW Ay S FOR POTE NT I Al INV E ST O R S

While the Indian furniture market is growing rapidly andcan yield sustained adv an tages , an assessment of the sec t orand the key trends driving it throw up a few key take -awaysfor potential in vest ors . These ar e:

Build the br and

India being a price and value-conscious market , consumerstypically look for cues that indicate assurance of value . A

strong brand is important for furniture manufacturers inthis r espec t , to increase customer awareness and trust .Participation in furniture trade sho ws, organising seminars ,

et c., could therefore prove to be useful means to build a br and .

Understand the mar k et

Potential in vest ors , would also need to concentrate onspecific regions/customer segments initially, to establishthemselves and test the market before investing in anational distribution net wor k . Establishing a liaison officeto study the market extensively and identifying in vestmen t

opportunities will also prove to be steps that will enableinvestors to firm up their India opera tions .

Focus on design

Designs that cater to local customer requirements ar e

an important requirement for success across markets . Inthis r espec t , companies could look at leveraging India straditional craftsmanship and technology base , thr oughdeveloping design schools or collaborating with the alr eadyexisting schools . Places in India, that are known for theirtraditional woodwork are listed in the appendix.


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F U R N I T U R E 11

A ppendix

l O C AT I ONS KNOWN FOR E x CE ll E NCE INW OO d W O R K

Although, furniture is manufactured in many different partsof the c oun tr y, a few centres have become well known fortheir exquisite carving , inlaying , turning and lac quer ing .These ar e:

Gujarat

Besides carved chests and almir ahs , Gujarat is synonymouswith the wooden swing . The different varieties of swings ar e

made using a range of wood from unvarnished hewn w oodto rich lac quer . Sankheda village, in Gujar a t , has a uniquetradition of engraving indigenously developed silver, goldand bronze colours on w ood . Sur a t , has a tradition of

par quetr y-wor k , which is locally called S adeli .

Kashmir

In K ashmir , extensive wood-work has been used forstructures since ancient times . Houses are lined with w oodceilings worked in geometrical patterns and windows inlattice work. The K ashmir i houseboa t , made entirely of aspecially seasoned wood that does not warp in w a t er , is avisual deligh t .

Hoshiarpur (Punjab)

Wood workers here specialise in inlaying ivory, now more orless replaced by plastic due to its low c ost . In tr ica t e designshave received royal patronage some generations ago .Wooden fur nitur e , trays and mirror frames repeat c er tain

basic motifs and ornamentation derived from natur e .

Saharanpur (Uttar Pr adesh)

This is the most flourishing commercial centre forwoodcar ving . Sheesham and Teak are used for the small-scale manufacturing of tr aditional , as well as moder n

products , such as , scr eens , cigarette bo xes , tables , tr ivets , bookends , et c. Saharanpur now also concentrates on woodseasoning or the preparation of wood before it is craf t ed , b ymellowing it and making it proof resistant against cr ack ingand splitting .

K er ala

Woodcrafts in the state of Kerala, God s Own Coun tr y,

vary from household furniture to animal figur es , which is amajor economic and cultural activity. Carvings from Kerala

represent its tradition and borrow strongly from spiritualvalues and though ts .

Other ar eas

West Bengal has its own tradition of strong folk carving .Carved figur es , fur nitur e , cabinets , jewellery bo xes , chests

and lamp stands produced in Bihar, are noted for theirelegant designs . Orissa excels in making beautiful do wr y

chests of painted w ood , in addition to carved figures ofLor d Jagannath and the temple at Puri. Andhra Pradesh isknown for its colourful Kondapalli t oys.


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1

MARKET & OPP ORT UN IT IE S

K E y P l Ay ER S

Godrej & Boyce Manufacturing Co.l

td .

It is a part of the Godrej Group and was incorporated in 1932. The Godrej Group recorded revenues of ar ound US$ 513 million in FY06

It mainly manufactures consumer products , officeequipmen t , consumer applianc es , chemicals , ag r o

products , security equipmen t , industrial products andoffer office automation and storage solutions

The compan y s manufacturing facility is located in

Mumbai, Mahar astr a The company has exclusive showrooms and dealer outlets

across India

F ea therlit e

Featherlite is one of India s largest furniture manufac tur ingcompanies and was started in 1965

Featherlite has been retailing furniture for the past 20 years and the first outlet was opened in Bangalor ein 1987

The company has a state-of-the-art manufacturing plant

and is engaged in continuous R&D The compan y s manufacturing plants are located in

Bangalore and Hosur . It has a presence in 22 loca tionsacross India

It has around 25 exclusive showrooms in Mumbai, Chennai,Bangalor e , Delhi, Kolkata and Hyder abad . It manufac turesaround 20, 000 chairs and 3, 400 workstations per mon th.

35 per cent of the total production is sold thr oughretail outlets

The company has an employee strength of 500, whichincludes archit ects , interior designers and others

Style Spa

Style Spa Furniture Limited is promoted by theZuari-Chambal Gr oup . Established in India in 1997,

to manufacture and retail fur nitur e , the company isheadquartered in Chennai

The US$ 15 million manufacturing facility at K ak k alur , nearChennai, in the state of Tamil Nadu , is a sophisticated and

fully automated plan t , which is one of Asia

s most moder nand largest manufacturing facilities. The ISO-certified plan t

produces around 0.2 million furniture pieces annually

The company manufactures home and office fur nitur ethat is retailed through about 92 exclusive retail outlets ,

spread across the c oun tr y The company also provides after sales services thr ough

its sho wr ooms

Millennium l if est yle

Millennium Lifestyle is a family owned en t er pr ise

incorporated in 1999. The family had nearly 75 years ofexperience in retailing Indian art and antiques

Millennium Lifestyle offers a one-stop solution to ca t erto the cust omers complete furniture r equir emen ts , as itoffers a wide range of furniture from around the w or ldunder one r oof

A number of brands across various product ca t egor iesare sold from the c ompan y s retail stores - Ar t eM, Divani,Loddenkemper , R ioAr t , Sauder , Sherwood and Sof tplus .Millennium Lifestyle has its showrooms spread across thetwo southern Indian cities of Bangalore and Hyder abad

The company also provides the desig ning your owninterior sitting at home service with the help of an online

interactive room desig ner

d urian

Durian is a major player in imported fur nitur e , off eringliving, bedroom, dining room and office fur nitur e

The company has been set up by the Dokania Gr oup ,which has been involved in plywood manufacturing forabout 25 years

Durian has over 40 imported furniture showrooms in thecoun tr y

The company also offers free interior design c onsultanc yand free delivery and furniture installa tion

Nilk amal

Nilkamal Group of Companies has a turnover of over US$ 125 million. It is the leader in plastic moulded fur nitur e

The company has diversified into the lifestyle fur nitur e business by launching @home , which is a complete homesolution store offering contemporary readymade wooden

fur nitur e . The company has eight manufacturing loca tionsin India. It also has joint ventures in Bangladesh andSri Lanka
mailto:@homemailto:@homemailto:@homemailto:@home


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F U R N I T U R E 13

It provides services like design solutions , pr of essionalguidance and interest free loans , besides furniture and

ac cessor ies The main strengths of the Group are a 350-member wide

direct sales net wor k , a 350-plus strong dealer net wor k ,

33 regional offices in all major Indian industrial cities and

24 warehouses all over India and a warehousing facilityalong with a marketing office in the UAE


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Exchange R a te Used

year Exchange R a te (INR/US$)

2000-01 45.75 2001-02 47.73 2002-03 48.42 2003-04 45.95 2004-05 44.87 2005-06 44.09 2006-07 45.11

DISC l A IM E R

This publication has been prepared for the India Brand Equit y Foundation (IBEF).

All rights r eser ved . All copyright in this publication and r ela t edworks is owned by IBEF. The same may not be r eproduc ed , whollyor in part in any material form (including photocopying or storing itin any medium by electronic means and whether or not transien tlyor incidentally to some other use of this publication), modified orin any manner communicated to any third party except with thewritten approval of IBEF.

This publication is for information purposes only. While due car ehas been taken during the compilation of this publication to ensur ethat the information is accurate to the best of IBEFs knowledge and

belief , the content is not to be c onstrued in any manner whatsoeveras a substitute for professional advic e.

IBEF neither recommends nor endorses any specified products orservices that may have been mentioned in this publication andnor does it assume any liability or responsibility for the out comeof decisions taken as a result of any reliance placed on this

publication.

IBEF shall, in no way, be liable for any direct or indirect damagesthat may arise due to any act or omission on the part of the userdue to any reliance placed or guidance taken from any portion ofthis publication.


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India Brand Equity Foundation (IBEF)is a public-private partnership between the Ministry of Commerce & Industry, Government of Indiaand the Confederation of Indian Industry. It aims to effectively pr esentthe India business perspective and leverage business partnerships in a globalising market-place.

India Brand Equity Foundation c/o Confederation of Indian Industry 249-F Sector 18, Udyog Vihar Phase IVGurgaon 122015, Haryana, INDIA

Tel: +91 124 401 4087, 4060 - 67 Fax: +91 124 401 3873, 401 4057 Email: [email protected] Web: www.ibef.org Website in the Russian language: www.ibef.org/russia
mailto:[email protected]:[email protected]:[email protected]://www.ibef.org/http://www.ibef.org/http://www.ibef.org/russiahttp://www.ibef.org/russiahttp://www.ibef.org/russiahttp://www.ibef.org/russiahttp://www.ibef.org/mailto:[email protected]

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