Home Center, the chain of furniture, home accessories and kitchenware outlets from the Dubai-based Landmark Group, is planning to increase the number of its stores to 25 from the current 15 by 2014 in India. The proposed expansion will attract an investment of Rs 300 crore going by current market trend.
After opening companies 15th store in India at Chennai today, Mahesh Shah, president, Home Centre, told Business Standard the company would look at increasing the number of stores to 25 by 2014 and a turnover of Rs 650–700 crore. In 2012–13, the company has set a turnover target of Rs 450 crore.
The company has been focusing on the market in metros and major cities, while it has also started off two stores in tier II cities of Coimbatore and Mangalore as a test basis.
While Shah refused to comment on the proposed investment, going by market conditions, investment to set up the said number of additional centres would require around Rs 300 crore.
Commenting on the government’s decision to allow foreign direct investment (FDI) in retail, Shah said: “While the industry will be benefited, it will not have any impact on the company, as it is not planning to raise funds from outside.”
The company’s market share is around seven–eight per cent in the organised home market at present, which is estimated to be above Rs 6,000 crore. The unorganised market is around Rs 94,000 crore, said Shah.
The first Home Center store was launched in Gurgaon in 2005 and since then the brand has expanded its reach to various cities, including Gurgaon, Bangalore, Mumbai, Noida, Pune, Chennai and Hyderabad. It currently has 15 stores in India with a typical floor space between 20,000 to 40,000 square feet.