Study of Market Potential of Modular Kitchen in India

8/10/2019 Study of Market Potential of Modular Kitchen in India

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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 UNDER THE GUIDANCE OF-

SUBMITTED BY- DR. MAUHA DATTA

VIKAS SHARMA

PGDM-II YEAR


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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

award of degree of Post Graduate Diploma in Management from INSTITUTE O"

MANAGEMENT STUD#ES$ NOIDA%

The content of this report is based on the information collected by me during my tenure at

MO!"# IDI! $TD. at Gurgaon for eight weeks of training dated from %&th of 'une to

%(th!ugust )%*+.

&ika' Sharma


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Company CERFICATE

A!KNO(EDGEMENT


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I e,press my sincere thanks to my project guide Mr% Da)id &irmaniat Operations in

Monark India imitedat 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- /IMS0In'titute Of Mana,ement Studie' $Noida-

for proiding me the re1uired facilities in the Department.

I would like to thank the whole respondents who proide me the best knowledge and for theirhelp and cooperation throughout the project.

Table of content


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1. Executive summary

2. Introuction

a. Inustry !ro"le

b. #r$ani%ation !ro"le

&. 'ee for (tuy

). *iterature Revie+

,. #b-ectives

. Researc/ 0et/oolo$y

a. Researc/ esi$n

b. (ample esi$n

c. Empirical Analysis

. Finin$s

3. Competitive Analysis

4. (u$$estions an Recommenations

15. (6#T Analysis

11. Conclusion

12. 7iblio$rap/y


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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 housingprojects- rising disposable incomes- changes in lifestyle and the emergence of nuclear

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 aesthetics-

increased 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 including3

0 In0depth analysis of the kitchen products market0 ! 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


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INTRODU!TION

A/OUT T0E !OMPAN#0 Monark is a one stop solution for all interior product andserice 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.


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The releance of the Market Potential of modular#itchen Industry is to analyse theaailability 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 cost of one single Modular #itchen- the deliery time

and so on. The Market "esearch conducted was a completely competitie analysiswhere 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 theIndian furniture market hae spelt a consciousness that een kitchens can hae a stylestatement 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 growthpotential.

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 there1uirements 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


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are called Bfloor unitsC or Bfloor cabinetsC on which a kitchen worktop made of granite-

marble- 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 foreffectie storage.

Modular kitchen normally constitutes wooden cabinets- counter tops- internal accessories-

electro 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


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They say cooking is an art. Fow about dressing up your culinary studio to bring out the bestin 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 amulti0functional area of a house- which apart from being the cooking space- doubles up as theshowpiece 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 orstyling a new apartment.

! modular set0up and state0of0the0art appliances- is what makes a kitchen the special cornerof the house- lending it a multi0faceted character and reflecting the personality of thehomemaker. ith the concept of an open kitchen becoming a norm in new constructions-kitchen solutions become a basic re1uirement and a modular set0up- complete with a chimneyand a hob- close to a necessity.

HOnce a growing trend- it is now a much needed asset- if you want effectie storage-conenience- e,1uisiteness and comfort-H says 7unaina #amboj- a housewife who is all set tograduate to a modular kitchen soon. Hith a chimney for effectie smoke e,it- e,pediency ofstorage and usage and proper space for essels- cutlery and containers- a modular or a semimodular 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.

HThe utility and functionality a modular kitchen offers will make it a necessity in the times tocomeH- says 5arkha 7- a Mumbai0based interior decorator. HIt is where the majority of moneyis going when you design a home-H she adds.

!yesha Dodeja- a kitchen design consultant from a Mumbai suburb agrees. H#itchen designsolutions range from "s >%-%%% to )% lakhs. e get clients who want to redo their kitchensright from the scratch 0 starting with getting a granite slab and chimney- to hobs- automateddrawers and plumbing. There are some who just want modular cupboards in their newkitchen.H On an aerage- people opting for a modular kitchen- inestanywhere 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 ofinnoatie- eclectic and functional designs- imparting an uni1ue character to ones kitchenand adding to the personality of the house. HThe ergonomically designed- touch0sensitieautomated drawers and oer0head cabinets are the latest fad- which might be slightly heay
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on the pocket but completely worth a one0time inestment-H informs Dodeja- who is in thebusiness of designing kitchens.

=resh and ibrant colours are in. H$ime green- black currant and berry branch are high0glosslaminates-H adds Dodeja. Depending on your budget- one gets to choose the outer material-ranging 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 lac1ueredfinish or the German acrylic finish. The number and type of drawers- special cabinets andspace0effectie modules strictly depend on the budget and space.

"Kitchen is truly the heartof 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'

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$ %he focus is on functionality and ergonomics and the main areas of

development are energy e)ciency green technology and sustainability with atinge 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 analy,e the growth of the modular kitchens in -urgaon$

%o develop and apply an appropriate research methodology to know the recent

trends for modular kitchens$

(0AT IS MONARK INDIA IMITED1
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e hae understood the concept of Modular #itchen- its background and eolution- thereasons behind the rising demand of the modular kitchen- the arious competitors in themarket and the brief about their company- the threats and the opportunities aailable and itsfuture in coming years. 5ut the 1uestion is where is MONARK INDIA IMITEDstanding

in this competitie marketE $et:s hae a glimpse about the company and my role into thiscompany.

O)er)ie2

Monark is a one stop solution for all interior product and serice re1uirements catering to theresidential and commercial Projects and retail channels.

Monark offers its products and serices to customers globally through a worldwide salesnetwork and branch offices located at Delhi /India4- 5arcelona 6 'aen /7pain4- 7hanghai 67hen2hen /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 andwarranty on its products.

(hy Monark1

;itality and success are the growth driers for any company. Oer the years Monark:se,ponential growth is the natural conse1uence of our determination to pursue our strategiesand our 1uest of knowledge.

9ach innoation we come up with springs from the constant stimulus proided by ourcustomers. This knowledge is an asset that is fed back into the cycle and circulatesthroughout all leels of employees- independent workers- customers and suppliers < so that itis 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 itshighest 1uality International brand and product solution with oer >% years ofManufacturing- 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 sericee,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 anddeelopment.

&i'ion

To be a leader as interior solution proider at all leels of production- distribution- brandsposition and installation serices by deliering high degree of satisfaction to our clients inresidential- hotels- commercial buildings and retail sectors.


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Mi''ion

To be recogni2ed in the market place as a 1uality drien innoator in interior products designand manufacturing by offering integrated interior solution adapted to Indian customer. ewill be offering best 1uality of products and serices and achiee market differentiation withemphasis 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. Thisresearch was preliminary and aimed to sere as a starting point for further marketing


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strategies to be pursued by the company. The research was e,ploratory in nature with theobjectie to gain insights regarding the main factors for further targeting their marketingcampaigns.

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 partners-and consumers. 7econdary research included an e,haustie search of releant publicationslike 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 whoirtually lie out of their laptop cases- think again. Modern housewies here hae pipped the


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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 the8" 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 ofGurgaon0based $ispo #itchens- the first major player to set shop in the state. HThen the realty

boom changed the rules and numbers of the game drastically. !t present we are catering to ademand of L%0% kitchens per month-H Mr. 7harma said.

Mr. 7harma claims the modular kitchen industryat present is worth "s *%%% crore in India.Other than realty- growing acceptance to multinational concepts and high affordability wereother reasons that led to the e,ponential growth of the modular kitchen industry in Gurgaonin the past decade- he adds.

! modular kitchen is basically a range of fi,turescabinets- which are put together in aplanned manner that makes kitchen tasks easier. They are usually designed to suit thecustomers preference as per the space aailable in ones home. One can choose from aariety of colours and patterns.

! modular kitchen comprises cabinets and drawerswhich ary as per the aailability ofspace- built0in coered baskets- dishwashing machine- chimney- cooking rangestoe-microwae oen- and washbasin. ood- lac1uer glass and laminates are used for the cabinetsand 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 used-accessories- appliances and gadgets that the customer goes for and the space he has. One canget a basic modular kitchen installed at a cost of "s * lakh to *.> lakh. !lmost % ? the

players in the industry are making modular kitchens in this price range.

!ccording to a research by etscribes /India4 Pt. $td- the market si2e of the modular kitchenindustry 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- thepioneer group to introduce modern appliances to Indian homes. The company supplies aaried range of accessories like chimneys and burners.

hen #aff was started in *&&(- there wasnt much demand as the concept was new to thecountry- he said. Foweer- in the past *% years our demand in Gurgaon for kitchenaccessories and appliances has increased e,ponentially. HOur business has been witnessingN%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 like5angalore and Mumbai as well but they often hae to pass on the business to other as they
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hae enough in hand from Gurgaon itself. H!round *.)> lakh apartments are set to come up inManesar and 7ohna road by )%*+- and if I assume that een )%? of that number goes formodular kitchens- I see a demand of ))-%%% to )+-%%% kitchens coming in the ne,t two years-Hsaid 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 isthe builders who hae generated the pace for the growth of this industry in the city in the pastfie years.

=irst they tried and tested the concept and today they offer modular kitchen as the basicsegment in their projects as they get more leerage and premium for their property. If theyhae *%% 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. Thehardcore 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 acapacity 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 anishout of the market as the customer is becoming increasingly aware of the product. !fter allwhat eeryone wants a good 1uality product.

The Modular #itchen Market is e,pected to witness strong growth. Many internationalplayers are entering the Indian market and large numbers of joint entures are taking place.

The report proides a brief oeriew of the market including the estimated market si2e-growth rate. !n analysis of driers reeals that growth in organi2ed retail- rise in housing

projects- changing demographics structure and need for customi2ed kitchen is driing growthin this sector. The key challenges identified are high prices of branded modular kitchen andlow replacement demand.

%he report discusses the current 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'


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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 sophisticated-

streamlined- 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 area 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.


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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 manyplaces in larger spaces to curb 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 kitchens-

spaces 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 0 the floor area will isually increase

Technology has definitely made cooking and its allied actiities faster. "efrigerators withteleisions integrated into their doors- motori2ed lids transforming a kitchen into a liing


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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 noiselesswhile 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 clingsare ine,pensie- temporary and can be used on stainless steel. allpapers /washable4 and


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patterns are now a regular with kitchen decor. 7o are backsplashes in glass- 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. Distressedfinishes 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.


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8ucine $ube has arious products in Modular kitchens. Maura /aailable in eneer- lac1uered

paint- and lac1uered glass finishes4 contains deep fryer and barbe1ue options with a 1uart2

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 system. It is proposed with an aluminium frame in a

polished champagne finish and a hori2ontally0grooed glass door in catalogue0featured

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 lac1uered-

coloured 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 to withstand heat- shock and chemical resistance 8reatia through

its geometric feels personali2es your liing space e,clusiely by creating more than eight

layouts in a single design.


24/35

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 beingthe 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 increasingemergence of nuclear families- rising disposable income and better affordability- this industryis e,pected to grow at the rate of +%? per annum.

%he Indian urniture market is worth about /0bn$ 1onstitutes 2$34 of the total -5P$

6mploys 722222 people$ 8ighly unorgani,ed' only about 934 in organi,ed sector$

Organi,ed sector growing at 724 1:-R$

!ooden home furniture is the biggest segment$

Key states for wood furniture; -ujarat Rajasthan 322 1r$ Indian readymade kitchens currently sold at the rate of 92222 units per

month in the country$

6&pected to grow 92 times in the ne&t three to four years$

*odular kitchen market in India is still at a nascent stage but hastremendous growth potential$

*arket has been witnessing a growth rate of 324 ?o?$

It is largely unorgani,ed with the presence of local and small players$


25/35

Kitchens account for @24 of the furniture and +ttings industry$ Products inthis 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 kitchens-

wardrobes- crockery units- T; units- 7how case and kitchen appliances 6 accessories.#IT8F97 is planning to manufacture almost >? of the components that go into making amodular kitchen with re1uired inestment.

Modular #itchen in India has created a reolution for all the homemakers. #itchen is thatspecial place in eery home meant to e,plore culinary passions and especially in India-eerything related to =ood is reered. !s Fome DRcor and Fome Interiors is gainingimportance- the new concepts in #itchen Decor making waes. One such modern concept ofModular #itchen is gaining immense popularity in India.

Modular #itchens are based on functional practicality and the onset of Modular #itchen inthe 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- withIndian 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 leels and demand for modular kitchen- which is alreadygrowing 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 witnessing a growth rate of >%? @o@.

The company is planning to purchase the wood working machineries with the re1uiredinestment to produce the kitchen cabinets in India to reduce the operational cost.


26/35

!om7etiti)e Ad)anta,e

The 8oimbatore modular kitchen market has lot of unorgani2ed competitors like carpenters-non branded low 1uality producers- etc. These producers are making the kitchen cabinets in

particle board- Medium density fiber and pre laminated boards at low cost. These kitchens arenot strengthened and will be affected by water seepage in two years.

The branded 1uality producers of Italian / ;eneta 8uisine 4 and German /Facker4 mademodular kitchens also aailable in 8oimbatore. 5ut- only upper class people can afford thecost 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 Indiancooking habits in mind. Mr. #itchens modular kitchen systems specially deeloped for theIndian cooking enironment.

Mr. #IT8F97 beliees in proiding the customers alue for their money and haepositioned the kitchens at an affordable price with a focus on the middle income segment. It

beliees that there is an untapped market in the middle income segment which is both brandsconscious and inspirational in nature. The company is targeting one of the fastest growingsegments- haing an increasing leel of disposable income.

Mr. #IT8F97 procures its raw material directly from reputed manufacturers- importers andsuppliers which helps the company to establish an efficient supply chain at competitie pricesand ensures timely deliery. The management of the company places significant emphasis onthe sourcing and logistics of raw material. The company is able to source key raw materialsclose 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 themarket place.

ith this modest initial inestment- the company projects significant sales and profit leelsby the completion of its si, month of operation.

This business plan was deeloped to introduce the company to prospectie inestors in orderto obtain financing to facilitate the growth of this company. The starts up e,penses arealready 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 machineries- show room e,penses and adertisement of theproduct. The funding will be utili2ed as follows3

=actory 7et up / *%%%% 71 ft 4 0 *%-%%-%%%

ood working Machineries!utomatic 9dge banding machine 0 **-%%-)+)Panel 7aw Machine 0 N-N>-(LNPost 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 *>%-%%% 4Key intere'tin, findin,' of the 'tudy3 O)erall !ountry


27/35

89:; of Intere't and I;97TM9T7in modern kitchen' come' from To7


28/35

!OMPETITI&E ANA#SIS

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 brands of Modular #itchens in thecountry today.

*. GODREB3

Godrej Interio- is the Modular #itchen brand from the house of Godrej- with its long standingbrand image of making tough- long lasting furniture. Their kitchen designs firmly resemblethe needs of the Indian households where the height of the work platform and placement ofthe units in the modular kitchens are made keeping in mind the aerage height of an Indianwoman and her cooking habits. Their cabinets are also specifically designed to proidestorage for the Indian kind of kitchenware. !ccording to the utility and fre1uent usage- the

placement of the units is planned.

"eature'3

Godrej Interio #itchens are made of galani2ed steel- making them far better inhandling spillage from oil and water stains that are regular damages in any cookingspree.

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 lookand N different types such as 7teel- MD= and Marine0ply- all of which are waterresistant. The colours of the shutter are carefully chosen to ensure a bright yet softlook that isually gies depth- astness and as the company claims- to create a happymood 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- addbeauty and a complete look to the kitchen.


29/35

! 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 makingeen the cleaning of the floor possible.

Godrej Interio #itchens assert that their unit based format can be coneniently

modified to suit indiidual needs and thus gies a high leel of fle,ibility and optimal

space utili2ation.The steel kitchens hae been a winner for Godrej with most consumers e,pressingsatisfaction with the fact that with steel one is not worried about termite infestation ordamage 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

). SEEK3

7leek Modular kitchens hae cared a name for themseles despite the heay competition in

the modular kitchen market. 7leek- as the company claims- aims at achieing progressthrough SSdesign- innoation and improement::. They are one of the largest manufacturersand 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 uni1ueinternational 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 companyboasts of.

They gie you a complete finish with precise looks and 1uality.

7leek modular kitchens are sturdy- elegant and hae perfect finishes.

hile 7leek has its adantages- there hae been issues with its installation with 1uite a fewconsumers critici2ing its franchisee dealers on websites like Mouthshut.com. 7o if you aregoing 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 SSIndianhomemaker desere the ery best in technology and aesthetics::- #utchina is best known forits chimneys. 5ut they do hae modular kitchens as well.

"eature'3

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 cleanThis is one of the finest features of #utchina kitchens.
http://www.godrejinterio.com/http://www.sleekworld.com/http://www.godrejinterio.com/http://www.sleekworld.com/


30/35

#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

+. GIMA3

Gilma beliees in eleating the standards of modular kitchens in India and make it worldclass. They promise innoatie features- state of art 1uality and futuristic designs with theirama2ing array of products. Bith Gilma:s products you are going for tomorrow:s lifestyle attoday:s priceC is their A7P.

"eature'3

Gilma uses Italian hardware.

ater


31/35

They use 55705acteria 5locker 7ilerguard an e,clusie trademark created for

antibacterial treatment using siler ions. The surface of the laminates are gien thistreatment to reduce bacteria growth by &&.&? and the biggest adantage of thissystem is that the antibacterial power remains unchanged oer time since they areembedded 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

L. MONARK INDIA3

Monark is a one stop solution for all interior product and serice re1uirements catering to theresidential and commercial Projects and retail channels.

Monark O==9"7its products and serices to customers globally through a worldwide salesnetwork and branch offices located at Delhi /India4- 5arcelona 6 'aen /7pain4- 7hanghai 67hen2hen /8hina4. Today it has manufacturing and administratie operations both in 9uropeand !sia. Our oerseas brand:s leadership is based on innoation- latest technology- 1ualityand warranty on its products.

"eature'3

(ork' only for the commercial 'ector

"ollo2' com7letely the er,onomic' theory

Ma?or Product' are3 Kitchen S7ace FModular Kitchen$ Kitchen A77liance' and

Eui7ment'$ Kitchen Shutter 5 !om7onent$ Sink 5 Sink "aucet' and !ounter

To7'-$ /athroom S7ace F"aucet' and Sho2er Sy'tem$ Sho2er Enclo'ure'$

&anitie' and /athroom !a6inet' and /athroom 0ard2are 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'-%

Ma?or /rand Partner' are PAADAR$ BAGER$ IGUAHU$ SOERA$PORTIO$ O"ITRES$ TEKA$ !OSENTINO$ PAMESA and A&I!%

!ertification from A&I!$ TEKA$ !OSENTINO and PAMESA%

Price Ran,e4 !an Start from $==$===J4 and can ,o u7 de7endin, u7on the 7ro?ect 'ie

and material' u'ed%

"or more Information )i'it www.monark0india.com
http://www.venetacucine.com/http://monark-india.com/aboutus.php?hid=2&aid=2http://www.monark-india.com/http://www.venetacucine.com/http://monark-india.com/aboutus.php?hid=2&aid=2http://www.monark-india.com/


32/35

S(OT ANA#SIS O" MONARK INDIA IMITED

STRENG0T (EAKNESS

Deal' only in !ommercial

'ector rather re'idential

2hich in turn' hel7' to

,enerate ,ood re)enue for

the com7any%

0a' local a' 2ell ,lo6al

7re'ence%

0i,hly unor,anied%

(ood i' im7orted from china

in'tead of 6uyin, it from Indian

market re'ultin, hu,e co't'

T0REAT OPPORTUNIT#

Entrance of 6oth

International and Dome'tic

7layer' in the market

Increa'in, hou'in, 7ro?ect'

Gro2th in Or,anied Retail

!han,in, demo,ra7hic 'tructure

and need for cu'tomied kitchen%


33/35

!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 giingwider range to consumers to choose from. ith people becoming more look and brandconscious the companies in this segment hae to introduce more world0class kitchenappliances to please the consumers whose number is eer increasing and who are ready tospend 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 isready. 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 ofmodular kitchen in terms of conenience- planning- space saing etc and the business hasgrown. Therefore the segment is going to be more beneficial not just for the franchisors but

een for the franchisees.


34/35

Indian kitchens hae undergone a total *(% degree shift in eery aspect- be it the basic look ofthe kitchen to the cooking habits and the kind of utensils used. ith markets being matureand changing lifestyles- modular kitchens hae become a way of life. 8onsidering the currentscenario and the trend- kitchen segment is e,pected to come up with products- appliances-accessories 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 inspirethem to spend more happy time in their kitchens.

5ibliography

"eferred 5ook of Marketing Management 5y0 #otler 6 #eller

http3articles.economictimes.indiatimes.com)%*)0%)0)>newsN*%&&(>>*kitchen0

appliances0modular0kitchen0cabinets

https3www.merar.commeeting0placeindiaconstruction0engineering0

architectureseeking0inestors0for0modular0kitchen0business0in0india
http://articles.economictimes.indiatimes.com/2012-02-25/news/31099855_1_kitchen-appliances-modular-kitchen-cabinetshttp://articles.economictimes.indiatimes.com/2012-02-25/news/31099855_1_kitchen-appliances-modular-kitchen-cabinetshttps://www.merar.com/meeting-place/india/construction-engineering-architecture/seeking-investors-for-modular-kitchen-business-in-india/https://www.merar.com/meeting-place/india/construction-engineering-architecture/seeking-investors-for-modular-kitchen-business-in-india/http://articles.economictimes.indiatimes.com/2012-02-25/news/31099855_1_kitchen-appliances-modular-kitchen-cabinetshttp://articles.economictimes.indiatimes.com/2012-02-25/news/31099855_1_kitchen-appliances-modular-kitchen-cabinetshttps://www.merar.com/meeting-place/india/construction-engineering-architecture/seeking-investors-for-modular-kitchen-business-in-india/https://www.merar.com/meeting-place/india/construction-engineering-architecture/seeking-investors-for-modular-kitchen-business-in-india/


35/35

http3www.free0press0release.comnews0indian0modular0kitchen0market0witnessing0

enormous0growth0*N&*L()*+).html

http3www.franchiseindia.commaga2ine)%%(april!dent0of0modular0kitchensN(0

)0)

http3www.thehindubusinessline.comindustry0and0economyreal0estatemodular0

kitchens0make0a0statementarticle>N&L>N.ece

http3www.hindu.compp)%%>%&**stories)%%>%&**%%*+%N%%.htm
http://www.free-press-release.com/news-indian-modular-kitchen-market-witnessing-enormous-growth-1391682142.htmlhttp://www.free-press-release.com/news-indian-modular-kitchen-market-witnessing-enormous-growth-1391682142.htmlhttp://www.franchiseindia.com/magazine/2008/april/Advent-of-modular-kitchens_38-2-2/http://www.franchiseindia.com/magazine/2008/april/Advent-of-modular-kitchens_38-2-2/http://www.thehindubusinessline.com/industry-and-economy/real-estate/modular-kitchens-make-a-statement/article5379653.ecehttp://www.thehindubusinessline.com/industry-and-economy/real-estate/modular-kitchens-make-a-statement/article5379653.ecehttp://www.hindu.com/pp/2005/09/11/stories/2005091100140300.htmhttp://www.free-press-release.com/news-indian-modular-kitchen-market-witnessing-enormous-growth-1391682142.htmlhttp://www.free-press-release.com/news-indian-modular-kitchen-market-witnessing-enormous-growth-1391682142.htmlhttp://www.franchiseindia.com/magazine/2008/april/Advent-of-modular-kitchens_38-2-2/http://www.franchiseindia.com/magazine/2008/april/Advent-of-modular-kitchens_38-2-2/http://www.thehindubusinessline.com/industry-and-economy/real-estate/modular-kitchens-make-a-statement/article5379653.ecehttp://www.thehindubusinessline.com/industry-and-economy/real-estate/modular-kitchens-make-a-statement/article5379653.ecehttp://www.hindu.com/pp/2005/09/11/stories/2005091100140300.htm

Documents

Study of Market Potential of Modular Kitchen in India