Summer Internship Project Report On
Study of Market Potential of modular Kitchen in India
In partial fulfillment for the award of the degree of
POST GRADUATION DEPOMA IN MANAGEMENT
A PROJECT REPORT SUBMITTED SUBMITTE D BYVIKAS SHARMA PGDM-II YEAR
UNDER THE GUIDANCE GUIDANCE OFDR. MAUHA DATTA
DE!ARATION
I will take pleasure in declaring that the project work that is undertaken by me is an original and authentic work done by me. This project is being submitted for partial fulfillment for awar award d of degr degree ee of Post Post Grad Gradua uate te Dipl Diplom omaa in Mana Manage geme ment nt from from INSTIT INSTITUTE UTE O" MANAGEMENT STUD#ES$ NOIDA%
The content of this report is based on the information collected by me during my tenure at MO!"# MO!"# IDI! $T $TD. at Gurgaon Gurgaon for eight weeks of training dated from %&th %(th !ugust )%*+.
&ika' Sharma
of 'une to
”Company CERFICATE”
A!KNO(EDGEMENT
I e,press my sincere thanks to my project guide Mr% Da)id &irmani at Operations in Monark India imited at Gurgaon- who has been guiding force to my report on *Study of Market Potential of modular Kitchen in India+% I would also like to thank to all of my friends and colleagues for their support and encouragement in finding out material for this project report- without their thankless support and efforts- making this report would hae been impossible for me. I am also thankful to Dr% Mauha Datta- /IMS0 In'titute Of Mana,ement Studie' $ Noidafor proiding me the re1uired facilities in the Department. I would like to thank the whole respondents who proide me the best knowledge and for their help and cooperation throughout the project.
“Table of content “
1. Executive Executive summa summary ry 2. Intro Introuct uction ion a. Inustry !ro"le b. #r$ani%ation !ro"le &. 'ee 'ee for (tuy (tuy ). *iteratur *iterature eR Revie+ evie+ ,. #b-ect #b-ective ives s . Researc/ Researc/ 0et/ool 0et/oolo$y o$y a. Resear Researc/ c/ esi$n esi$n b. (ampl (ample e esi$n c. Empiri Empirical cal Analy Analysis sis . Finin Finin$s $s 3. Competitive Competitive Analysis Analysis 4. (u$$estion (u$$estions s an Recommenat Recommenations ions 15.
(6#T Analysis
11.
Conclusion
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7iblio$rap/y
E.E!UTI&E SUMMAR#
The modular kitchen market in India is e,pected to continue to record significant growth oer the forecast period. The growth is primarily attributed to an increase in the number of housing projects- rising disposable dis posable incomes- changes in lifestyle and the emergence of nuclear n uclear families. Products are also e,pected to become more affordable with a ariety of pricing options- and growth in the organi2ed retail sector- changing perspecties on home aestheticsincreased incomes and a rise in the number of working women are also e,pected to drie growth. The report proides top0leel market analysis- information and insights into the kitchen products market in India In dia including3 0 In0depth analysis of the kitchen products market 0 ! detailed analysis of market attractieness- coering the key trends- driers and challenges 0 Detailed insights into the regulatory framework- market entry strategy- product innoation and marketing strategy releant to the kitchen products market
INTRODU!TION
A/OUT T0E !OMPAN# 0 Monark is a one stop solution for all interior product and serice re1uirements catering to the residential and commercial Projects and retail channels.
Monark offers its products and serices to customers globally through a worldwide sales network and branch offices located at Delhi /India4- 5arcelona 6 'aen /7pain4- 7hanghai 6 7hen2hen /8hina4. Today it has manufacturing and administratie operations both in 9urope and !sia. Our oerseas brand:s leadership is based on innoation- latest technology- 1uality and warranty on its products.
(0# MONARK1
;itality and success are the growth driers for any company. Oer the years Monark:s e,ponential growth is the natural conse1uence of our determination to pursue our strategies and our 1uest of knowledge. 9ach innoation we come up with springs from the constant stimulus proided by our customers. This knowledge is an asset that is fed back into the cycle and circulates throughout all leels of employees- independent workers- customers and suppliers < so that it is always aailable with someone who works with us. =ollowing are some of the reasons for which you should look for us3 •
Monark India $td has gained respect for innoation- creatiity- modern design and
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high 1uality reliable project solutions for its customers in the globalM!"#9T global M!"#9T with with its highest 1uality International brand and product solution with oer >% years of Manufacturing- Design and Project solution e,pertise . Our designing hubs haing collection of designers e1uipped with cutting edge
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technology platforms and well0trained employees coupled with high 1uality serice e,ceeding productiity 6 time management. =or all our 8ustomers- we offer the best solutions inspired by 9uropean aesthetic suited for the Indian life style with innoatie 1uality products and processes. The reinestment of profit as the basis for consolidation and future innoation and deelopment.
Need for Study
The releance of the Market Potential of modular #itchen Industry is to analyse the aailability scope into this industry. Detailed study of the dew of the major players in the market. =ind out the types of brands they use- the warranty and guarantees proided by them- the aerage ae rage cost of one single sing le Modular #itchen- the deliery delier y time and so on. The Market "esearch conducted was a completely competitie analysis where I coered the Gurgaon $ocation. During research we came out of the arious interesting facts and figures which we will discuss in the following pages. 5ut before we moe ahead lets understand the meaning of the modular kitchen.
ITERATURE RE&IE(
Modular #itchens are based on functional practicality. The onset of modular kitchens in the Indian furniture market hae spelt a consciousness that een kitchens can hae a style statement and at the same time be comfortable- efficient and elegant. 8onenience- efficient use of space- and lifestyle changes has increased the demand for modular kitchens today. Opportunities e,ist- not only with domestic players but with international retailers as well.
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7tands at around "s. )->%% 8r. Indian readymade kitchens currently sold at the rate of *%-%%% units per month in the country. 9,pected to grow *% times in the ne,t three to four years. Modular kitchen market in India is still at a nascent stage but has tremendous growth potential. Market has been witnessing a growth rate of >%? @o@. It is largely unorgani2ed with the presence of local and small players. Anorgani2ed market includes carpenters making self0designed kitchens based upon the re1uirements of the households. Modular kitchens are customi2ed based on the re1uirements of the consumer. 5ased on the need of the consumer- it can be set up with arious accessories like chimney burner etc.
#itchens account for +%? of the furniture and fittings industry. Products in this market are largely focused towards establishments in urban India.
(0AT IS MODUAR KIT!0EN1
Modular #itchen is a term used for the modern kitchen furniture layout consisting of modules of cabinets made of diersified materials which hold accessories inside- which can facilitate the effectie usage of the spaces in a kitchen. ormally the units which are kept on the floor
are called Bfloor unitsC or Bfloor cabinetsC on which a kitchen worktop made of granitemarble- tile or wood has been laid for creating spaces for aried actiities in a kitchen. The units which are held on the wall for storage purposes are termed as Bwall unitsC or Bwall cabinetsC. In small areas of kitchen in an apartment- een a Btall storage unitC is aailable for effectie storage. Modular kitchen normally constitutes wooden cabinets- counter tops- internal accessorieselectro domestic gadgets like chimney- hob- built0in0oen- sink with or without drain board and in some cases a refrigerator- dishwasher or other gadgets. The designer normally designs the space using modules of standardi2edcustomi2ed si2es to suit indiidual spaces.
ow the ne,t 1uestion is that a Modular #itchen is a ecessity or $u,uryEE
IS MODUAR KIT!0EN A NE!ESSIT# OR U.UR#1
They say cooking is an art. Fow about dressing up your culinary studio to bring out the best in youE #itchen solutions offer myriad ways to style this part of your home sweet home. The kitchen has earned lot more character than the traditional rasoi today. It has become a multi0functional area of a house- which apart from being the cooking space- doubles up as the showpiece of the house- dining space- comfort 2one or the special corner of your party. eedless to say- it deseres special treatment when you are planning to redo your house or styling a new apartment. ! modular set0up and state0of0the0art appliances- is what makes a kitchen the special corner of the house- lending it a multi0faceted character and reflecting the personality of the homemaker. ith the concept of an open kitchen becoming a norm in new constructionskitchen solutions become a basic re1uirement and a modular set0up- complete with a chimney and a hob- close to a necessity. HOnce a growing trend- it is now a much needed asset- if you want effectie storageconenience- e,1uisiteness and comfort-H says 7unaina #amboj- a housewife who is all set to graduate to a modular kitchen soon. Hith a chimney for effectie smoke e,it- e,pediency of storage and usage and proper space for essels- cutlery and containers- a modular or a semi modular kitchen is all about conenience- ease- handiness and lu,ury- of course within your budget. It is sure to sae your time and effort-H she is coninced. coninc ed. HThe utility and functionality a modular kitchen offers will make it a necessity in the times to comeH- says 5arkha 7- a Mumbai0based interior decorator. HIt is where the majority of money is going when you design a home-H she adds. !yesha Dodeja- a kitchen design consultant from a Mumbai suburb agrees. H#itchen design solutions range from "s >%-%%% to )% lakhs. e get clients who want to redo their kitchens right from the scratch 0 starting with getting a granite slab and chimney- to hobs- automated drawers and plumbing. There are some who just want modular cupboards in their new kitchen.H On an aerage- people opting for a modular kitchen- inest inest anywhere anywhere between "s *0 ).)> lakhs- while there are a few takers for high0end solutions. Depending on ones budget- space and lifestyle demands- one can choose from a ariety of innoatie- eclectic and functional designs- imparting an uni1ue character to ones kitchen and adding to the personality of the house. HThe ergonomically designed- touch0sensitie automated drawers and oer0head cabinets are the latest fad- which might be slightly heay
on the pocket but completely worth a one0time inestment-H informs Dodeja- who is in the business of designing design ing kitchens. =resh and ibrant colours are in. H$ime green- black currant and berry branch are high0gloss laminates-H adds Dodeja. Depending on your budget- one gets to choose the outer materialranging from medium density fibre- marine ply- matte finish- high0gloss finish- te,ture or fabric finish. =or a lu,urious look and feel- one can go in for the higher0range lac1uered finish or the German acrylic finish. The number and type of drawers- special cabinets and space0effectie modules strictly depend on the budget and space. "Kitchen is truly the heart heart of of the home and the wall between the living room and kitchen is breaking with this concept" says Sanjeev !adhwa country manager isher # Paykel$ "%he trend of premium or lu&ury appliances is growing and is catching up fast with global e&posure and more and more imported modular' modular' kitchen brands coming to India$ %here is also a growing interest of consumers who want a seamless (living and cooking( space making the kitchen more fun and friendly$ friendly$ %he focus is on functionality and ergonomics and the main areas of development are energy e)ciency green technology and sustainability with a tinge of never'before used colours and combinations" he points out$
#b-ectives
*y research objective is to +nd the market potential of modular kitchens$ %o %o analy,e the growth of the modular kitchens in -urgaon$ %o %o develop and apply an appropriate appropriate research methodology to know the recent trends for modular kitchens$
(0AT IS MONARK INDIA IMITED1
e hae understood the concept of Modular #itchen- its background and eolution- the reasons behind the rising demand of the modular kitchen- the arious competitors in the market and the brief about their company- the threats and the opportunities aailable and its future in coming years. 5ut the 1uestion is where is MONARK INDIA IMITED standing in this competitie marketE $et:s hae a glimpse about the company and my role into this company. O)er)ie2
Monark is a one stop solution for all interior product and serice re1uirements catering to the residential and commercial Projects and retail channels. Monark offers its products and serices to customers globally through a worldwide sales network and branch offices located at Delhi /India4- 5arcelona 6 'aen /7pain4- 7hanghai 6 7hen2hen /8hina4. Today it has manufacturing and administratie operations both in 9urope and !sia. Our oerseas brand:s leadership is based on innoation- latest technology- 1uality and warranty on its products. (hy Monark1
;itality and success are the growth driers for any company. Oer the years Monark:s e,ponential growth is the natural conse1uence of our determination to pursue our strategies and our 1uest of knowledge. 9ach innoation we come up with springs from the constant stimulus proided by our customers. This knowledge is an asset that is fed back into the cycle and circulates throughout all leels of employees- independent workers- customers and suppliers < so that it is always aailable with someone who works with us. "ollo2in, are 'ome of the rea'on' for 2hich you 'hould look for u'3 Monark India $td has gained respect for innoation- creatiity- modern design and high 1uality reliable project solutions for its customers in the global market with its highest 1uality International brand and product solution with oer >% years of Manufacturing- Design and Project solution e,pertise . Our designing hubs haing collection of designers e1uipped with cutting edge technology platforms and well0trained employees coupled with high 1uality serice e,ceeding productiity 6 time management. =or all our 8ustomers- we offer the best solutions inspired by 9uropean aesthetic suited for the Indian life style with innoatie 1uality products and processes. The reinestment of profit as the basis for consolidation and future innoation and deelopment. &i'ion •
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To be a leader as interior solution proider at all leels of production- distribution- brands position and installation installa tion serices by deliering de liering high degree degre e of satisfaction to our clients c lients in residential- hotels- commercial buildings and retail sectors.
Mi''ion
To be recogni2ed in the market place as a 1uality drien innoator in interior products design and manufacturing by offering integrated interior solution adapted to Indian customer. e will be offering best 1uality of products and serices and achiee market differentiation with emphasis on our 9uropean accent. e will be sericing our client with both our innoatie design and reliable project management e,pertise. &alue'
Our philosophy rests on three core alues3 8reatiity- Juality and "eliability e strie to be innoatie in our approach. e treat people with dignity and respect. e promote positie relationship with our customers and shareholders. e strie to deelop professionalism and ensure personal growth of our employees. e are committed to our ision and stay true to our core alues. e are committed to protecting our enironment. • • • • • •
RESEAR!0 MET0ODOOG#
The study incorporated a research to find out the arious kinds of brands used by the arious modular kitchen companies- the deliery time and the aerage cost of the kitchen. This research was preliminary and aimed to sere as a starting point for further marketing
strategies to be pursued by the company. The research was e,ploratory in nature with the objectie to gain insights regarding the main factors for further targeting their marketing campaigns. Re'earch Method4Primary 5 Secondary Method
The information contained in this report is based upon both primary and secondary sources. Primary research included interiews with kitchen hoods manufacturers- channel partnersand consumers. 7econdary research included an e,haustie search of releant publications like newspapers- websites- and proprietary databases. "ield (ork
The researcher isited the arious stores of Modular kitchen in Gurgaon including all the major players and local players of modular kitchen. This research helped the researcher to understand the arious types of brands being used for the different components of the modular kitchen such as brands for type of wood being used- the hinges- the aerage cost of the kitchen- the warranty being proided for the oerall kitchen- and so onK..
EMPIRI!A ANA#SIS Modular kitchen indu'try i' a 6oomin, 6u'ine'' in Gur,aon GA"G!O3 I= @OA thought Gurgaon is a city inhabited and dominated by IT nerds who irtually lie out of their laptop cases- think again. Modern housewies here hae pipped the
geeks to the post with a wide margin. !t an annual growth rate of +% percent- the business of kitchen appliances is head and shoulder aboe the IT industry in the city. !nd modular appliances- which reolutioni2ed the lies of homemakers with ease and elegance- mean serious business for the 8" the 8" entrepreneur . Hhen we started the modular kitchen business in *&&+- we made not more than *%0*> kitchens per month and that too only for the elite-H discloses 7urjit #umar 7harma- director of Gurgaon0based $ispo #itchens- the first major player to set shop in the state. HThen the realty boom changed the rules rule s and numbers of the game drastically. dr astically. !t present we are catering to a demand of L%0% kitchens per month-H Mr. 7harma said. Mr. 7harma claims the modular kitchen industry at present is worth "s *%%% crore in India. Other than realty- growing acceptance to multinational concepts and high affordability were other reasons that led to the e,ponential growth of the modular kitchen industry in Gurgaon in the past decade- he adds. ! modular kitchen is basically a range of fi,turescabinets- which are put together in a planned manner that makes kitchen tasks easier. They are usually designed to suit the customers preference as per the space aailable in ones home. One can choose from a ariety of colours and patterns. ! modular kitchen comprises cabinets and drawers which drawers which ary as per the aailability of space- built0in coered baskets- dishwashing machinemachine- chimney- cooking rangestoemicrowae oen- and washbasin. ood- lac1uer glass and laminates are used for the cabinets and shutters along with sturdy material like marbles or granite for the worktops. The price can range from "s >%-%%% to )% lakh depending on the style- material usedaccessories- appliances and gadgets that the customer goes for and the space he has. One can get a basic modular kitchen installed at a cost of "s * lakh to *.> lakh. !lmost % ? the players in the industry indus try are making modular kitchens kitchen s in this price range. rang e. !ccording to a research by etscribes /India4 Pt. $td- the market si2e of the modular kitchen industry in the country in )%%( was "s NN billion and has grown at the rate of >%? to hit "s >% billion in )%%&. The organi2ed market comprises of %? of the market. HThe kitchen appliances market that was worth "s *% crore a decade back has grown to "s N%% crore at present-H said a spokesperson of the Gurgaon0based #aff !ppliances /India4- the pioneer group to introduce intr oduce modern appliances applianc es to Indian homes. The company supplies s upplies a aried range of accessories like chimneys and burners. hen #aff was started in *&&(- there wasnt much demand as the concept was new to the country- he said. Foweer- in the past *% years our demand in Gurgaon for kitchen accessories and appliances has increased e,ponentially. HOur business has been witnessing N%0+%? increase eery year. Modular kitchen is no longer a lu,ury but a household necessity. #aff proides a full range of appliances to suffice the need of all income groups-H he added. Players in city say they hae been getting huge demand for the business from other cities like 5angalore and Mumbai as well but they often hae to pass on the business to other as they
hae enough in hand from Gurgaon itself. H!round *.)> lakh apartments are set to come up in Manesar and 7ohna road by )%*+- and if I assume that een )%? of that number goes for modular kitchens- I see a demand of ))-%%% to )+-%%% kitchens coming in the ne,t two years-H said Mr. 7harma of $ispo. The company has seen it business grow at the rate of *> to )% ? in the past fie years by catering to a high0profile clientele comprising "ahejas- D$= and !nsals among others. HIt is the builders who hae generated the pace for the growth of this industry in the city in the past fie years. =irst they tried and tested the concept and today they offer modular kitchen as the basic segment in their projects as they get more leerage and premium for their property. If they hae *%% apartments and we cater to the kitchen demand for them- then it leads to our brand promotion itself-H Mr. 7harma said. The Gurgaon modular kitchen industry seems to be the perfect e,ample of co0e,istence. The hardcore modular kitchen industry in the city is unorgani2ed but organi2ed players say that it does not affect them. H9ery one is getting their share of the pie. There must be a demand of *%% modular kitchens per month in Gurgaon and since I hae a capacity to delier only )%- the business of rest (% wont affect me. I am happy to get my *%% ? business-H said Mr. 7harma. Fe added that the unorgani2ed sector will ultimately anish out of the market as the customer is becoming increasingly aware of the product. !fter all what eeryone wants a good 1uality product. The Modular #itchen Market is e,pected to witness strong growth. Many international players are entering the th e Indian market and large numbers nu mbers of joint entures are taking place. The report proides a brief oeriew of the market including the estimated market si2egrowth rate. !n analysis of driers reeals that growth in organi2ed retail- rise in housing projects- changing demographics structure structur e and need for customi2ed kitchen is driing growth g rowth in this sector. The key challenges identified are high prices of branded modular kitchen and low replacement demand. %he report discusses discusses the current market market trends including entry of international players into the market players forming joint ventures and collaborations and increase in private e.uity investments and ac.uisitions$ %he report pro+les the major domestic and international players and includes their business highlights +nancials and e&pansion plans$
The !urrent Trend'
ith the demand of the clients- Modular kitchens hae become a must in many houses where the homeowners can plan eery fitting- eery material and eery layout. More sophisticatedstreamlined- sleek- 0 modular kitchens are aesthetically ery pleasing. ! ariety of Modular kitchens are aailable in the market today and the ariety e,tends to all their features too. They come in arious shapes 0 A0shaped /ery efficient and great space saing4- $0shaped /good for small kitchens4- straight /the basic form4- island kitchens /for bigger si2ed kitchens4 and parallel kitchens /eliminating the need to walk between two work areas4. 8ircular work islands and central islands customi2ed into many layers are gaining tremendous popularity. Options like freestanding island kitchens also integrate e,tra storage space.
The trend of open plan kitchens without any demarcation between the liing and kitchen areas also e,ists. #eeping in mind the current trends- 88 India and ;eneta 8ucine hae focussed on deeloping the kitchen as a liing space- and not just a place to cook. !dds Mr #arumbiah- He hae made the kitchen a place to spend 1uality time with ones family by including the liing room- party area- library and T; area. Most of the kitchens are loaded with all appliances and accessories /coffee machine- ice maker4- to reduce the actual cooking time and to make it less tedious. Due to the surge in the number of people purchasing Modular #itchens in India and 8hina oer the last few years- the needs of India and 8hina are a focus of 88 IDI! and ;eneta 8ucine 0 we focus on local cooking needs.H The other concepts that are being incorporated here include the ju,taposition of e,tremely minimalistic furniture pieces with ery classic pieces the introduction of technology and automation for the worktop- chimney- and other such key areas 9co friendliness /anti0bacterial kitchens4 as a key focus area of the Modular #itchen. Modular kitchens come with specific accessories 0 chimneys- dishwashers- oens- pull out drawers- trolleys- wine cutleries- cooking range- adjustable sheles and its surprising to find the diersity in these accessories themseles.
In an age of sociali2ation- kitchens are also seen as places of interaction where the hosts and guests can chit chat 0 a kitchen bar is a space for guests to sit while the hosts complete their chores. In large kitchens- more than one workstations make a lot of sense in saing time. Moablefoldable countertops while proiding an e,tra platform can also be seamlessly melted into the kitchen decor to free up space. "ound countertops are also preferred at many places in larger spaces to curb cu rb much moement. Materials like wood- granite- 1uart2 emanate a great Modular look. Designers go to a great deal- trying to get the natural light into the kitchen while for lighting after dusk- task- direct and inset lighting are preferred. ith the green moement progressing in all 1uarters of design- $9D lights are also considered a hit. Designers are not shying away today to lend this space a glamour 1uotient by incorporating an elegant chandelier too.
The sneaky drawers hae been replaced by drawers with soft closing technology that can glide in and out with just a small tap. The synchroni2ation of the cabinetry with the entire kitchen has become so important that appliances /like the microwae and the oen4 are concealed by making their e,teriors match with the cabinetry styling. The cabinetry can be wall mounted- base cabinets- suspended sheling units from the ceiling and furniture styled cabinets while the storage has increased by manifolds- the way the storage is e,tracted is much more intelligent than eer before. In the conentional wasted corners of kitchensspaces are creatiely cared out for storing appliances. 8ompact larder units are a great way of storing dry grocery and fresh drink bottles. One finds cups hanging under the k itchen cabinets on mid way systems. These kind of space use makes the kitchen more efficient and de clutters it- making cooking a more enjoyable task. all cabinets and doors dont necessarily need a handle today to be operated. 8onsider running mirrored plinths along the bottom of the base cabinets cabine ts 0 the floor area will isually isu ally increase Technology has definitely made cooking and its allied actiities faster. "efrigerators with teleisions integrated into their doors- motori2ed lids transforming a kitchen into a liing
space by coering the hob and sink areas- four door wall cabinets conerting into a fully functional kitchen with a press of a button- are the many innoations in kitchen e1uipment and appliances that one finds today. 8himneys with feather touch buttons and built in $9D lights- oil filters- lu,urious chimneys in crystals with carbon pads /eliminating the need of any ducting area4 are also there in the market. There are some chimneys which are noiseless while others can be remote operated- some hae the sensor technology and can switch on and off automatically as needed. There are pyrolytic oens which are self0cleansing 0 one can just increase the oen temperature and the food and grease are mostly burned off. There is also the concept of an integrated fridge which is fitted with a wooden panel oer the door that is created to match the cabinetry. They are entilated from the front /instead of the back as in standard refrigerators4 and hence can be placed anywhere without the consideration for air space around them. !ailable in different si2es- these are energy efficient and hae alarms which go on when the refrigerator door is left open.
7inks today also see a lot of ariations 0 in materials- shapes- and colours. The aailability of a plethora of materials has also stepped in to offer new finishes to the kitchen design 0 glass- stainless steel- wood- laminates- lac1uer- stones like granite- slate and marble- high glass eneers and eco0 friendly options. Glass is used a great deal nowadays to make the kitchen look elegant. =rosted or stained glass doors for cabinets help in making the space isually open. 7tainless steel appliances are still considered ery trendy. 8ontemporary ideas for decorating kitchen appliances- cabinets and walls hae also come in. ;inyl clings are ine,pensie- temporary and can be used on stainless steel. allpapers /washable4 and
patterns are now a regular regu lar with kitchen decor. 7o are backsplashes in glassgla ss- stainless steel and een brick. $aminates are also aailable where one can write and erase and een pin sheets. The splash of colours has also made its way into the kitchen today. =rom neutrals- to blur and lighter green shades- to warmer colours to bold colours- all are being implemented. Distressed finishes hae been a faourite. 7ometimes the monotony of the kitchen is broken by giing a strikingly different colour to the central island. hile neutral shades were much in demand earlier- today one finds the presence of bold contrasting colours in most kitchens to make a statement. =aucets today are high tech and stylish. Pull0out faucets hae made life a tad easier. 8hrome finished faucets are elegant. The colour and material trend being followed at 88 India and ;eneta 8ucine is ju,taposition of neutral colours and neons introduction of pastel colours into the kitchen and the use of 557 5acteria 5lock 7iler Guard /an anti bacterial material that disinfects all worktops and spaces in the kitchen thereby rendering a safer enironment4. Internationally- product designers are definitely coming up with more out0of0bo, solutions in kitchens. hile there has been an innoation of a Modular space saing kitchen cabinet system for a one bedroom apartment- a studio or a loft /which has sliding modules when one is not cooking or working can slide together and create different kind of sideboards4- there is also a portable kitchen unit which comes with a cooktop- a sink- garbage disposal system and work space for food preparation- and can be assembled or disassembled in a few minutes. There is also a noel concept of enclosed kitchen sinks with moable cutting boards and retractable faucets when counter space is restricted. Multipurpose kitchenette including a cooking hub- dish washer- sink- fridge and washing machine assimilated in one structure and with a sensor technology is also 1uite an innoation. There are also internet refrigerators which download recipes on their $8D screens and keep the consumer informed about the e,piry of the food inside.
8ucine $ube has arious products in Modular kitchens. Maura /aailable in eneer- lac1uered paint- and lac1uered glass finishes4 contains conta ins deep fryer and barbe1ue ba rbe1ue options with a 1uart2 1ua rt2 worktop. There is also a $e0Mans tray as an option for corner and it houses an island chimney and a built < in oen. !dele reels in the natural beauty of wood and has a wide range of lac1uered colours that eoke the feel of a pure material. $ucy /aailable in ersatile layouts4 is specifically designed for contemporary enironments where space is shared and the kitchen becomes its ery own furnishing furn ishing system. It is proposed propos ed with an aluminium frame in a polished champagne finish and a hori2ontally0grooed hori2ontall y0grooed glass door in catalogue0featured catalogue0fe atured colours. Glass features in the countertop and sink. 5raa is based on a hand0less concept- has a smooth- neat look and is aailable in arious finishes such as eneer- high gloss lac1ueredcoloured glass- gold and siler foils on acrylic base. 8ucine $ube recently launched two of their innoatie design collections 0 ilde Gres and 8reatia. hile ilde Gres uses porcelain and is designed des igned to withstand heat- shock s hock and chemical resistance resista nce 8reatia through its geometric feels personali2es your liing space e,clusiely by creating more than eight layouts in a single design.
Finin$s !otential of 0oular 8itc/en in Inia Furniture Inustry The furniture industry is a "s. *-%%% 8r. industry today 0 the modular kitchen segment being the fastest growing. !s per industry statistics- the kitchen segment stands at around "s )%-%%% 8r.- with the modular kitchen industry at "s. )>%% 8r. and growing. ith the increasing emergence of nuclear families- rising disposable income and better affordability- this industry is e,pected to grow at the rate of +%? per annum. • •
%he Indian urniture urniture market market is worth about /0bn$ 1onstitutes 2$34 of the total -5P$
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6mploys 722222 people$
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8ighly unorgani,ed' only about 934 in organi,ed sector$
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Organi,ed sector growing at 724 1:-R$
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!ooden home furniture f urniture is the biggest segment$
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Key states for wood furniture; -ujarat Rajasthan
0oular 8itc/en Inustry Modular #itchens are based on functional practicality. The onset of modular kitchens in the Indian furniture market hae spelt a consciousness that een kitchens can hae a style statement and at the same time be comfortable- efficient and elegant. 8onenience- efficient use of space- and lifestyle changes hae increased the demand for modular kitchens today. Opportunities e,ist- not only with domestic players but with international retailers as well.
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Stands at around Rs$ >322 1r$ Indian readymade kitchens currently sold at the rate of 92222 units per month in the country$
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6&pected to grow 92 times in the ne&t three to four years$
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*odular kitchen market in India is still at a nascent stage but has tremendous growth potential$ *arket has been be en witnessing witn essing a growth grow th rate of 324 ?o? ?o?$ It is largely unorgani,ed with the presence of local and small players$
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Kitchens account for @24 of the furniture and +ttings industry$ industry$ Products in this market are largely focused towards establishments in urban India$
F9T9RE #F 0#9*AR 8ITC:E' 251);251 The Modular 7witch market in India to reach A7QL%+.>N million by )%*L. One of the key factors contributing to this market growth is the rapid growth of the 8onstruction industry in India. The Modular 7witch market in India has also been witnessing the deelopment of adanced modular switches. Foweer- the high cost of modular switches could pose a challenge to the growth of this market. The key endors dominating this market space are !nchor 9lectricals Pt. $td.- Faells India $td.- Foneywell 9lectrical Deices and 7ystems India $td.- and $egrand India Pt. $td. The other endors mentioned in this report are G9 8o.- 7chneider 9lectric 7!- !55 $td.- and Philips 9lectronics India $td. In)e'tment O77ortunity
Mr. #IT8F97 is engaged in the designing- supply and installation of modular kitchenswardrobes- crockery units- T; units- 7how case and kitchen appliances 6 accessories. #IT8F97 is planning to manufacture almost >? of the components that go into making a modular kitchen with re1uired inestment. Modular #itchen in India has created a reolution for all the homemakers. #itchen is that special place in eery home meant to e,plore culinary passions and especially in Indiaeerything related to =ood is reered. !s Fome DRcor and Fome Interiors is gaining importance- the new concepts in #itchen Decor making waes. One such modern concept of Modular #itchen is gaining immense popularity in India. Modular #itchens are based on functional practicality and the onset of Modular #itchen in the furniture market of India hae spelt a consciousness that een kitchens can hae a style statement and at the same time be comfortable and elegant. !ccording to Industry e,perts- the modular kitchens segment stands at around S*>%%8r- with Indian readymade kitchens currently sold at the rate of *%-%%% units per month in the country. The increasing number of nuclear families- rising disposable incomes- affordability- and easy budget- will drie awareness awarenes s leels and demand for modular modu lar kitchen- which is already alread y growing at the rate of +%? per annum. Modular kitchen in India is e,pected to grow *% times in the ne,t three to four years. Modular kitchen market in India is still at a nascent stage but has tremendous growth potential. Market has been b een witnessing a growth rate of o f >%? @o@ @o@.. The company is planning to purchase the wood working machineries with the re1uired inestment to produce the kitchen cabinets in India to reduce the operational cost.
!om7etiti)e Ad)anta,e
The 8oimbatore modular kitchen market has lot of unorgani2ed competitors like carpentersnon branded low 1uality producers- etc. These producers are making the kitchen cabinets in particle board- Medium density de nsity fiber and pre laminated boards at low cost. These kitchens are not strengthened and will be affected by water seepage in two years. The branded 1uality producers of Italian / ;eneta 8uisine 4 and German /Facker4 made modular kitchens also aailable in 8oimbatore. 5ut- only upper class people can afford the cost of these kinds of imported kitchens. These kitchens are aailable from "s.>- %%-%%% to "s.(- %%-%%%. Rationale for the deal Mr. #IT8F97 incorporates the latest trends in modular kitchens keeping the Indian cooking habits in mind. Mr. #itchens modular kitchen systems specially deeloped for the Indian cooking enironment. Mr. #IT8F97 beliees in proiding the customers alue for their money and hae positioned the kitchens kitch ens at an affordable price with a focus on the middle income inco me segment. It beliees that there is an untapped market in the th e middle income segment which is both b oth brands conscious and inspirational in nature. The company is targeting one of the fastest growing segments- haing an increasing leel of disposable income. Mr. #IT8F97 procures its raw material directly from reputed manufacturers- importers and suppliers which helps the company to establish an efficient supply chain at competitie prices and ensures timely deliery. The management of the company places significant emphasis on the sourcing and logistics of raw material. The company is able to source key raw materials close to the factories resulting in reduction of transportation costs. U'e of financin,
The company is seeking for an inestment of "s.L->%-%%% / A7D *>%-%%% 4 / 7i,ty seen $akhs fifty thousand only4 to achiee its goal of budget class modular kitchen supplier in the market place. ith this modest initial inestment- the company projects significant sales and profit leels by the completion of its si, s i, month of operation. This business plan was deeloped to introduce the company to prospectie inestors in order to obtain financing to facilitate the growth of this company. The starts up e,penses are already done by the promoters of the company. The Purpose of this proposal is to secure "s.L->%-%%% / "upees 7i,ty seen lakhs fifty thousand only4 as an inestment for the purchase of wood working workin g machineries- show room e,penses e,p enses and adertisement of the product. The funding will be utili2ed utili2e d as follows3 =actory 7et up / *%%%% 71 ft 4 0 *%-%%-%%% ood working Machineries !utomatic 9dge banding machine 0 **-%%-)+) Panel 7aw Machine 0 N-N>-(LN Post forming machine 0 +-%>-N>) Fydraulic Fot Press machine 0 *)-NN->% Dust collector 0 +N->> 7howroom 7et up / )>%% s1 ft 4 0 >-%%-%%% Product display 0 *%-%%-%%% !dertisement 0 >-%%-%%% orking 8apital "esere 0 L-N*-)*( Total 0 L->%-%%% / A7D *>%-%%% 4
Key intere'tin, findin,' of the 'tudy3 O)erall !ountry
89:; of Intere't and I;97TM9T7 in modern kitchen' come' co me' from To7 To7 <= citie' 3 Mumbai- Delhi- 5angalore- 8hennai- Fyderabad- Pune- #olkata- !hmedabad- 8handigarh'aipur. I;97TM9T7-- with some R'% >%9 lakh' i' the mo't common 7rice 7oint for kitchen I;97TM9T7 users willing to spend as much as "s. *> lakhs. Sha7ed- Parallel and U Sha7ed are the most popularly searched types of Modular #itchens.
$ 7haped #itchens hae a large island with a sink on one wall- range on the other- and a preparation sink in the island- thereby making a huge counter space spac e possible. This type is ideal when one is faced with a space crunch. Parallel #itchens are designed to ensure ma,imum utili2ation of aailable space without compromising on the conenience of cooking. A 7haped #itchens are the open kitchens that proide more space to the kitchen that "A7 "A7 down down to the dining area. Indian 'tyle modular kitchens are more popular and receie four times the number of isits when compared to the Italian 'tyle modular kitchens.
Indian style kitchens are mostly $ 7haped which enhances the floor space. ith drawers and cabinets embedded in this kitchen design- it makes the counter workable and free of space crunch. hereas- Italian style kitchens hae low0cost cabinets and enough center space for main chores in the kitchen and a small kiosk as 9$$ Oer N? of the searches done are for 6lue modular kitchen'. Green is the second most popular colour followed by red. 8abinets- baskets and built0in appliances are the most searched for kitchen accessories followed by cutlery trays and chimney 6 hoods. !mong the +% brands displayed on kitchen.sulekha.com- Sleek$ I"/$ Godre? Interio and &eneta !ucine$ are the most popularly searched brands in the modular kitchen M!"#9T. @S7eakin, on the occa'ion$ o cca'ion$ Satya Pra6hakar$ !EO$ Sulekha%com$ 'aid$ Oer the last one year- 7ulekhas user analysis has indicated that #itchens hae become an area of increasing interest and I;97TM9T7 I;97TM9T7 in in urban households in the top ( cities- leading us to launch kitchen.sulekha.com- a dedicated online marketplace for #itchen needs. The site has receied tremendous response and is growing *%%? eery 1uarter. Our users hae spent nearly "s. >% crores in kitchen improements last year. e look forward to enriching this marketplace with more O==9"IG7 O==9"IG7 and and growing our network of buyers and sellers manifold. •
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!OMPETITI&E ANA#SIS To7 To7 9 6rand' in Modular Kitchen'
hile interiors in any house can be done in numerous styles- what with the surfeit of ideas in the market today- when it comes to kitchens < there is only one idea for the new look < MODUAR KIT!0ENS hat started as a concept yesterday is today an attractie option Modular #itchens are gaining ground with their housewife friendly features ease in installation- adjustability- great space0saing capacity and 1uick and easy maintenance. 5ut with so many brands cluttering the market- finali2ing your kind of brand might be difficult. difficult. 7o we thought we:ll help you out with the top > brands of Modular #itchens #itchens in the country today. *. GODREB3 Godrej Interio- is the Modular #itchen brand from the house of Godrej- with its long standing brand image of making tough- long lasting furniture. Their kitchen designs firmly resemble the needs of the Indian households where the height of the work platform and placement of the units in the modular kitchens are made keeping in mind the aerage height of an Indian woman and her cooking habits. Their cabinets are also specifically designed to proide storage for the Indian kind of kitchenware. kitchenware. !ccording !ccording to the utility and fre1uent fre1uent usage- the placement of the units is planned. p lanned. "eature'3 Godrej Interio #itchens are made of galani2ed steel- making them far better in handling spillage from oil and water stains that are regular damages in any cooking spree. The entire kitchen is made in steel or metal with additional options of laminated wood or steel shutters again making it easy to clean. 7hutters are also aailable in membrane0pressed wooden and post0formed steel look and N different types such as 7teel- MD= and Marine0ply- all of which are water resistant. The colours of the shutter are carefully chosen to ensure a bright yet soft look that isually gies depth- astness and as the company claimsclaims- to create a happy mood in the kitchen. The shades and the pattern of the wooden shutters hae been crafted to gie it contemporary styling. !dditionally cornice and pelmets in some of the styles- add beauty and a complete look loo k to the kitchen. •
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! poly inyl chloride skirting is proided to aoid dust and water from entering below the units thus helping mopping of the floor. !lso the skirting is remoable making een the cleaning of the floor possible. Godre Godrejj Inter Interio io #itc #itchen henss asser assertt that that their their unit unit based based form format at can be cone conenie nientl ntly y modified to suit indiidual needs and thus gies a high leel of fle,ibility and optimal space utili2ation. Thee steel Th steel kitch kitchens ens hae hae been been a winne winnerr for Godre Godrejj with with mo most st consum consumers ers e,pre e,pressi ssing ng satisfaction with the fact that with steel one is not worried about termite infestation or damage due to water. If you agree with this- you could go for this brand. Price starts from "s *.> lakhs . =or more information isit http3www.godrejinterio.com •
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). SEEK3 7leek Modular kitchens hae cared a name for themseles despite the heay competition competition in the modular kitchen kitchen market. market. 7leek- as the company company claims claims-- aims aims at achiein achieing g progress progress through SSdesign- innoation and improement::. They are one of the largest manufacturers and marketers of kitchen accessories and products in India. "eature'3 7leek pride themseles in a A7P of CCo7timum utiliation of 'tora,e '7ace% They hae an affiliation with an Italian brand thereby giing their kitchens a uni1ue international design. ! wide range of shutter and cabinet design from international houses proide a truly BsleekC and stylish kitchen. Ase of ergonomics0 a scientific method to design interiors- is what the company boasts of. They gie you a complete finish with precise looks and 1uality. 7leek modular kitchens are sturdy- elegant and hae perfect finishes. • •
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hile 7leek has its adantages- there hae been issues with its installation with 1uite a few consumers critici2ing its franchisee dealers on websites like Mouthshut.com. 7o if you are going for 7leek be sure to go by a reputed dealer or a trusted recommendation. Price range3 7tarts "s.(%-%%%0 =or more information isit http3www.sleekworld.com N. KUT!0INA3 The pioneers in !ATO 8$9! T98FO$OG@ and the brand that beliees that the SSIndian homemaker homemaker desere the ery best in technology and aesthetics::aesthetics::- #utchina #utchina is best known for its chimneys. 5ut they do hae modular kitchens as well. "eature'3 8leaning 8leaning the chimney has always been the most cumbersome cleaning process in any kitchen and #utchina:s A7P is its ability to gie you chimneys that spare you this trouble. 'ust pour soap water- collect dirty water and presto- your chimney is clean This is one of the finest features of #utchina kitchens. •
#utchina kitchens bring the most up0to0date- crest0of0the0line German technology. They hae counter tops made of stone that are durable- look good and neer lose luster. They use marine ply shutters with a wide range of te,tures- patterns and colours which are water resistant unlike commercial ply shutters which can puff up due to water seepage. Price range3 starts at "s >%-%%%0 =or more information isit http3www.kutchina.com • •
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+. GIMA3 Gilma beliees in eleating the standards of modular kitchens in India and make it world class. They promise innoatie features- state of art 1uality and futuristic designs with their ama2ing array of products. Bith Gilma:s products you are going for tomorrow:s lifestyle at today:s priceC is their A7P. "eature'3 Gilma uses Italian hardware. ater
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>. &ENETA !U!INE3 The famous Italian house brand- ;eneta 8ucine - is creating a bu22 with its high tech and stylist stylistic ic designs designs.. Its I7O &%%* certifi certificati cation on issued issued by the prestig prestigious ious TA; Institut Institutee in Germ German any y is a 1ual 1ualif ific icat atio ion n whic which h pro proes es that that the the comp compan any y uses uses high highly ly ada adanc nced ed organi2ational procedures and production methods. !nd as a tribute to sustainability and BGreen thinking enironmentC- the company utili2es *%%? wood composites to build the elements for its kitchens- employs materials that do not damage damage the enir enironm onment ent-- and has has imple impleme mente nted d produc producti tion on metho methods ds which which incl include ude continuous0cycle water0based enameling- a process that drastically reduces the emission of harmful substances. substances. ;eneta 8ucine despites its high end pricing- offers offers practical adantages to the customer. "eature'3 ;eneta 8ucine:s wide range of internal internal accessories accessories and deices are all designed to be sturdy and practical making it een more reliable and durable. •
They use 55705a 55705acter cteria ia 5locker 5locker 7ilergua 7ilerguard rd an e,clusi e,clusiee tradem trademark ark created created for antibacterial treatment using siler ions. The surface of the laminates are gien this treatment to reduce bacteria growth by &&.&? and the biggest adantage of this system is that the antibacterial power remains unchanged oer time since they are embedded into the particles and does not eaporate. Its hinges and guides hae damping deices for a soft closure. all units with automatic closure and illuminated rear for sheles. Drawers with N% kg load0bearing capacity and tested for )%%-%%% closure cycles. Practical- ergonomic design thanks to handy interior accessories. Price range3 8an start from "s +-%%-%%%0 and go up depending on the material you choose. =or more information isit www.enetacucine.com •
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L. MONARK INDIA3 Monark is a one stop solution for all interior product and serice re1uirements re1uirements catering to the residential and commercial Projects an d retail channels. Monark O==9"7 O==9"7 its its products and serices to customers globally through a worldwide sales network and branch offices located at Delhi /India4- 5arcelona 6 'aen /7pain4- 7hanghai 6 7hen2hen /8hina4. Today Today it has manufacturing and administratie administratie operations both in 9urope and !sia. Our oerseas brand:s leadership is based on innoation- latest technology- 1uality and warranty on its products. "eature'3 •
(ork' only for the commercial 'ector
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"ollo2' com7letely the er,onomic' theory
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Ma?or Product' Product' are3 Kitchen S7ace FModular FModular Kitchen$ Kitchen$ Kitchen A77liance' A77liance' and Eui7ment'$ Eui7ment'$ Kitchen Shutter 5 !om7onent$ !om7onent$ Sink 5 Sink "aucet' and !ounter !ounter To7'-$ 7'-$ /athro /athroom om S7ace S7ace F"auce F"aucet' t' and Sho2er Sho2er Sy'tem$ Sy'tem$ Sho2er Sho2er Enclo'u Enclo'ure re'$ '$ &anitie' and /athroom /athroom !a6inet' !a6inet' and /athroom /athroom 0ard2are 0ard2are Acce''orie'-$ Acce''orie'-$ i)in, '7ace F(ardro6e'$ (ooden "loorin,$ (ooden Door'$ UP&! Door' 5 (indo2'$ Aluminum Door' and (indo2' and Tile'- AND Other' F Door 'kin'$ Office "urniture$ (ooden !om7onent 5 !arca''e'$ 0ard2are$ En,ineer' Stone' 5 Acce''orie'-%
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Ma?o Ma?orr /r /ran and d Part Partne ner' r' are are PAADA ADAR$ R$ BAGE BAGER$ R$ IGUA IGUAHU HU$$ SO SOE ERA RA$$ PORTIO$ O"ITRES$ TEKA$ !OSENTINO$ PAMESA and A&I!% !ertification from A&I!$ TEKA$ !OSENTINO and PAMESA%
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Price Ran,e4 !an Start from $==$===J4 and can ,o u7 de7endin, de7endin, u7on the 7ro?ect 'ie and material' u'ed% "or more Information )i'it www.monark0india.com
STRENG0T •
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Deal' Deal' only only in !omme !ommerc rcial ial 'ect 'ector or rath rather er re'i re'id denti ential al 2hich in turn' hel7' to ,ener ,enerate ate ,ood ,ood re)en re)enue ue for the com7any%
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0i,hly unor,anied%
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(ood ood i' im7ort im7orted ed from from chin china a in'tead of 6uyin, it from Indian market re'ultin, hu,e co't'
0a' loca ocal a' 2el 2ell ,lo6al o6al 7re'ence%
T0REAT •
(EAKNESS
Entrance of 6oth International International and Dome'tic Dome'tic 7layer' in the market
OPPORTUNIT# •
Increa'in, hou'in, 7ro?ect'
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Gro2th in Or,anied Retail
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!han,in, demo,ra7hic 'tructure and need for cu'tomied kitchen%
S(OT ANA#SIS O" MONARK INDIA IMITED
!ON!USION
Obsering the stable growth- companies are planning to role out more outlets in near future and this segment would see lots of competition in terms of ariety and price- thus giing wider range to consumers to choose from. ith people becoming more look and brand conscious the companies in this segment hae to introduce more world0class kitchen appliances to please the consumers whose number is eer increasing and who are ready to spend e,tra if proided with the right 1uality of products. They look for the solution where eerything comes intact and in three hours their kitchen is ready. 7o modular kitchen retail will definitely increase with the increase in retail segment. !lso highlighting the future of the industry- 8onsumers hae seen the practical benefits of modular kitchen in terms of conenience- planning- space saing etc and the business has grown. Therefore the segment is going to be more beneficial not just for the franchisors but een for the franchisees.
Indian kitchens hae undergone a total *(% degree shift in eery aspect- be it the basic look of the kitchen to the cooking habits and the kind of utensils used. ith markets being mature and changing lifestyles- modular kitchens hae become a way of life. 8onsidering the current scenario and the trend- kitchen segment is e,pected to come up with products- appliancesaccessories and serices to feed the current trends. !lso- the home makers can choose the kitchen- which fits their home style- work style and lifestyle and this will definitely inspire them to spend more happy time in their kitchens.
5ibliography
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"eferred 5ook of Marketing Management 5y0 #otler 6 #eller
http3articles.economictimes.indiatimes.com)%*)0%)0)>newsN*%&&(>>*kitchen0 appliances0modular0kitchen0cabinets
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