Himatsingka Seide plans foreign foray

Himatsingka Seide Ltd, specialising in blended silk yarn and textiles, plans to enter foreign markets through its retail brand 'Atmosphere' to grab a share of the growing home furnishings market.

Atmosphere is operational under a wholly-owned subsidiary, Himatsingka Wovens Pvt Ltd. The company plans to open Atmosphere retail outlets in Dubai and in Hong Kong or Singapore next fiscal.

The three regions are on the company's radar as they are considered emerging markets in the home furnishings segment on account of the booming construction sector (both residential and commercial).

Atmosphere is a premium luxury home furnishing brand catering to a large segment of consumers, including residential complexes and hospitality industry.

"Over 60 per cent of the sales happen through interior designers and decorators. Since Dubai is witnessing hectic construction activities, the demand for home furnishings is high. For instance, in Dubai alone, 80-100 hotels are coming up. We see this as a great opportunity to grow our business," said Himatsingka Wovens vice-president (Retail) Bharat Ram.

The Dubai outlet will be opened in mid-April while another store will be commissioned in Hong Kong or Singapore sometime later. The average size of the stores will be around 5,000 square feet.

A variety of products like silk fabrics, silk blends, curtains, cushion and upholstery are sold under the Atmosphere brand. "Only samples of the products are displayed at the retail outlets. Once the customer places an order, the shipment will take place. The business approach is entirely different from other retail brands. We are keen on having stores only in good locations," he pointed out.

Atmosphere was launched in September 2003 and contributes about 15 per cent to Himatsingka Seide's overall revenues. "The brand is growing at a compounded annual growth rate of 50 per cent, which is highly encouraging. We have design centres in New York and Bangalore to contribute to our product innovation," Ram added.

At present, Atmosphere is available through 11 retail outlets across the country in cities like Bangalore, Ahmedabad, Chennai, Delhi, Hyderabad, Ludhiana, Mumbai, Kolkata, Gurgaon and Pune.

The average size of these stores is 3,000 square feet. The company plans to add three more retail outlets in Kochi, Mumbai and Chandigarh during 2007-08 fiscal.

The Rs 165 crore Bangalore-based Himatsingka Seide Ltd recently acquired a 70 per cent stake in the Italian home textile producer Giuseppe Bellora to expand its global footprint.