Under the distribution partnership H&R Johnson would promote Nobilia by setting up standalone stores, while Nobilia would provide the technology support and the products. The first store was launched in Pune and in the next six months, plans are to launch 5-6 more stores with a total investment of around Rs 6 crore, said Sushil Matey, COO, H&R Johnson (India).
“The new stores would be offering Nobilia's branded products starting from a price point which is affordable to middle class people. It would showcase modular kitchens in a price range of Rs 3 lakh to Rs 50 lakh and more,” he said.
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The company has been in tie up with Nobilia from 2006, sourcing the products and selling under the brand of Johnson kitchen through its outlets. The company would continue to offer the products in the range of Rs 1.5 lakh to Rs 15 lakh, while the Nobilia stores are for the products branded under Nobilia.
“In Germany, every one out of three modular kitchen sold is a Nobilia product. Our strategic partnership with H&R Johnson would give us access to the Indian market, and we are expecting more stores to be opened through the partner in India,” said Michael Behr, head – exports, Nobilia (Germany).
Matey added that the kitchen industry in the country is currently crowded with over 1000 manufacturers and the size of modular kitchen industry is around Rs 2,200-2,500 crore. A major share of the modular kitchen market is in the price range of Rs 3-6 lakh. Johnson Kitchen has posted a sales of around Rs 20 crore in FY 13.
H&R Johnson, which offers tiles, sanitaryware, bath fittings and kitchens, has posted a gross revenue of Rs 1887 crore in the fiscal year ended March 2012-13, and has a distribution network of 33 modern retail stores called House of Johnson and Johnson Corners besides 1,200 dealers, 15,000 sub-dealers and a network of retail experience stores.