The Rs. 1,000-crore Nilkamal group, which entered the home furniture and furnishings market four years back with its chain of @home stores, is expecting sound contribution from the business as its expansion plans take shape.
“In the next two to three years, we expect business to go up to Rs. 300 crore from Rs. 125 crore in 2008-09,” said Manish Parekh, director, Nilkamal Ltd. In the next four years, @home is set to contribute one-third of the group’s turnover.
“The store count is set to go up from 14 to 21 by the end of the current fiscal year, while in the next three to four years, it will increase to 50.” The average size of its large format stores is 16,000 to 20000 square feet, while smaller stores have a size of 7,500 square feet.
The group has employed 750 people for the business, with second-generation entrepreneurs from the family — Manish Parekh, Hiten Parekh and Nayan Parekh leading from the top. The company sources furniture from countries like China and Malaysia and incurs a fixed cost of Rs. 3 crore per store.
The company is focusing on ‘quality assurance’ to enable customers overcome concerns of quality of ready-made furniture.
The organised market for the home furnishings has attracted the interest of other players such as Future Group and Dubai-based Landmark group.