`Capex for 2012-13 would be around Rs 100 mn`
17th July 2012 01:18 PM
In an exclusive interview with Meena Konar of Myiris.com, Anant Maloo, chairman and MD of Timbor Home, says, "We hope our efforts will help us grow in the coming years and we are looking forward to a fruitful first quarter."
What is your outlook for Furniture industry?
The Indian Indian furniture retail market has been classified by CSIL Milano as one of the 14th largest furniture markets in the world due to the rising purchasing power of the more than 400 million middle class population. This USD 8 billion industry has been growing at 30% compound annual growth rate in just the organised sector which accounts for only 15% on the entire industry.According to a Cushman and Wakefield report, the demand for residential spaces is forecasted to hit 4.25 million units while the demand for office spaces is expected to hit 400 million sq.ft. between 2010 and 2014. Another major segment is contract furniture which is driven by the increasing hotel developments and tourism demand.
All these factors, clubbed with the evolving consumer demographics and increase in spending on lifestyle products bodes very well for the Indian furniture industry.
Recently Timbor Home has tied up with many builders and corporate for new residential schemes and housing projects. Could you brief us about this?
Home furniture is a basic necessity rather than a luxury. Every home, whether high-end or mass housing, has a need. The concept of fully loaded bathrooms and kitchens has been around for a while now and we are taking this forward through the launch of our "Ready to Live" furniture solutions for new residential schemes and housing projects wherein we provide builders and their clients with complete furniture solutions. In fact, we would also like to come in as an interior partner for a housing project which already has a land owner and developer. In view of the current real estate slowdown, we feel that this concept would be a win-win for all concerned. A developer can offer value added products instead of dropping the price, and a customer can avail a fully furnished apartment at a good price in comparison to the retail price that they would have paid for the furniture. Additionally, the time and money saved in running behind the procurement of interior materials and workmen proves to be a definite bonus.
What are your expansions plans especially for overseas market? And what would be your immediate focus?
Our immediate focus lies in the setting up of our high-end IKI stores, of which we mean of open 30 in near future.
Any exports in this financial year?
We are exploring opportunities and are hopeful to start exports soon.
The company has a pan-India distribution network of over 130 showrooms, which are spread across 20 states and 80 cities. Going forward are you planning to expand your plantation projects and new stores in near future?
Yes, we plan to expand our plantation project in the future. Currently, we are working towards putting in place our production facilities adding to the value chain, synchronizing processes to decrease the cycle time and producing quality products.
How do you see your revenue & earnings growth for the coming quarter?(in million) FY10-11 FY11-12 Revenue 791.5 813.3 Net Profit 27.4
30.1EPS 24.8 21.3
The company has sustained its steady growth, keeping revenue and net profits high in comparison to the last year. It has been a year of planning and implementing strategies. Timbor Home has also increased its manpower to focus on implementing marketing strategies which shall translate into more revenues. We hope our efforts will help us grow in the coming years and we are looking forward to a fruitful first quarter.
Recently Timbor Home got funds from SIDBI to set up high-end "IKI" (Intelligent Kitchen) kitchen stores nationally. Do you think this new concept would accelerate your growth in Indian market?
The modular kitchen segment is worth around Rs. 200 billion. We expect it to continue to grow at its 50% annual growth rate for the next few years too. This market has immense potential and a steady growth rate, which is why we decided to move into the premium kitchen space with our new IKI Kitchen stores.
What are your capex plans for FY12-13?We are expanding our Timbor Cucine modular kitchen network aggressively. Currently, our network stands at over 120 stores in about 80 cities and 20 states across India. We shall continue to grow our network further in the value segment through this brand. "Timbor Home" and "IKI Kitchens" our high end brands are sold through 9 self-owned stores, and we plan to increase this number exponentially in the near future. Our capex in this financial year would be around Rs.100 million. focused towards new store rollouts. Would you like to convey any message to the shareholders of the company?Be a part of growth story.
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