UK-based Formica Group on Monday said it is re-entering the Indian market after nearly three decades, with plans to capture around five per cent of the estimated Rs 2,000 crore laminate products market in the next three years.
"Formica is focusing on emerging markets, like the Middle East and India. According to global insight, India is one of the largest markets for construction and real estate and with the economy growing, we want to be directly present here," Formica Group Vice-President Melle de Pater told PTI.
The group, which is now part of New Zealand-based Fletcher Building Products Group, had entered the Indian market in 1966 and set up a manufacturing facility at Pune. It was later sold to Nusli Wadia Group company Bombay Burmah Trading Corporation (BBTC) in 1977.
While Formica had entered into a licencing agreement with BBTC and allowed non-exclusive use of its brand name in India, the agreement between the two firms ended last year.
"We will now start from scratch. We are setting up new branch offices, building distribution channels. In the next two-three years, we want to get 5 per cent of the estimated Rs 2,000 crore Indian laminate market," Formica India Head Sanjay Badri said.
To start with, the company has launched a range of laminates dedicated to the Indian market for both the residential and commercial sector. It is targeting northern and eastern states, besides Maharashtra and Karnataka, in the initial phase.
"Our products have been tailor-made for Indian customers. We will also be making products for international projects developed here," Badri said.
The company currently has a manufacturing facility in Ahmedabad, which has a capacity to make around 1 lakh sheets a month. Formica Group, which has global sales of around Rs 26,000 crore, has 10 manufacturing facilities spread across North America, Europe and Asia. It was acquired by Fletcher Building Products Group in 2007 for $700 million.