Pinnacle ties up with French furniture major

Ritz Home Industries, the 50:50 JV, will make high-end sofas for export market

Indore-based Pinnacle Industries Ltd (PIL) has entered into a partnership with French furniture major Cauval Industries for manufacturing high-end sofas for export market. The new 50:50 joint venture company will be named Ritz Home Industries.

Sudhir Mehta, executive director, PIL, said, "The new unit in Pithampur will cater to the fast-growing market for high-end furniture and also provide employment to around 300 people."

The officials expect the new company to target an annual turnover of Rs 50 crore. Sources close to the development said the tie-up would give a cost advantage to the company because of low labour costs in the country.

He said, "Ritz Home will start production by August this year." Company sources said the Pinnacle is now in the process of establishing a nationwide dealer network.

The Cauval pact is Pinnacle's second initiative to foray into the international market in association with a global brand. Earlier, PIL had entered into a joint venture with an Italian furniture major, Saporiti, to set up Pinnacle Saporiti.

This company manufactures the Saporiti line of the furniture including sofas, beds and recliners in Indore as per Italian design and standards.

Set up in 1996 to primarily manufacture automotive seats for the four-wheelers and two-wheelers industry, Pinnacle later started manufacturing seats for movie theatres.

The Rs 20,000-crore domestic furniture market has been growing at a rate of 15 per cent a year. The largest share of this market "� 65 per cent "� comes from the household segment. Hotels account for 12 per cent and the corporate sector 15 per cent. The domestic furniture industry has, however, been largely fragmented and unorganised.