Appliance firms set sights on modular kitchens

Consumer durable makers are looking at grabbing a piece of the pie in the modular kitchen space. Kitchenware appliance maker TTK Prestige, which has been testing waters in this space, plans to open exclusive showrooms devoted to modular display kitchens starting May this year. The first outlet will be in Bangalore and subsequently Prestige plans to open four more showrooms in the south - in Chennai, Hyderabad and Cochin.

Last month, home appliances major Whirlpool India had also announced plans to enter the burgeoning segment in the second half of the year. Godrej & Boyce is also betting large on the sector with Godrej Interio modular kitchens. Godrej & Boyce, which launched Godrej Interio, the umbrella brand for all Godrej furniture and interiors, last September, is poised to ramp up its presence in the space. The company is expected to invest Rs 100 crore to set up around 20 new retail stores in the coming year. Chandru Kalro, executive VP-marketing, TTK Prestige believes that the company is looked upon as a trusted brand or a 'known angel' in kitchenware, which easily extends to modular kitchens.

Players are bullish about the segment because of the booming real estate market. And the trend is expected to intensify. With a large number of young people buying homes, modular kitchen space is a fast growing market today. The young are more receptive and willing to spend on latest equipment and furnishings, and the market is just waiting to be tapped, say consumer appliance makers.

"The new modular kitchen market is huge. Almost 70 per cent of apartments, that have recently been furnished in the newer buildings of big cities, have installed modular kitchens," Kalro says. Arvind Uppal, managing director of Whirlpool India believes that the modern working woman values her time, appreciates high-end, technologically superior products and is willing to pay the price for them.

Prestige is eyeing the modular kitchen space as a separate venture, although it already has an extensive network of 185 outlets selling pressure cookers and other kitchen appliances across the country. Kalro says, "We realise that we require highly specialised formats to showcase options, colour variations and choice of materials." Last year, the pressure cooker maker claims to have sold eight modular kitchen kits per month on an average, priced at Rs 1-2 lakhs, from its outlets in Bangalore and via direct marketing. Their sales figures touched Rs 3.5 crore last year in the division and the firm is targeting Rs 5.5 crore this year.

"Our immediate goal is to become an established player in a growing segment," Kalra says. Moreover, the company expects the new venture to infuse an element of 'lifestyle aura' into their existing brands."