R Raheja Group to increase stake in sanitaryware biz

Rajan Raheja Group company Bella Casa India (BCIL) is scaling up its sanitaryware and accessories business. BCIL is planning to set up nearly 650 stores in the next 10 years. Of this, 400 will be Tile Bazaar value-retail stores and 250 Bella Casa premium stores.

By March 2008, the company is planning to open five more Bella Casa stores from two now, and 30 Tile Bazaar stores from 14 at present. Bella Casa stores cover an area of 4,000 to 6,000 sq ft, while Tile Bazaar has a store area of 400 to 1,600 sq ft.

The organised sanitaryware market is estimated at Rs 1,500 crore and growing at 15 to 20 per cent every year.

"The untapped huge opportunity in this segment and the absence of national players made us ramp up the operations," said Ananth Narayan, CEO, BCIL. However, Narayan declined to comment on the expected revenues and investment in the next 10 years.

Narayan said for Bella Casa, they are targeting couples at the age group of 25-40 with high disposable incomes and likes to spend on beautifying their homes, and Tile Bazaar would aim at lower to middle income consumers who want these products at reasonable rates.

"With both these chains, we are planning to cover the entire range of consumers for the sanitaryware market," added Narayan.

Bella Casa will import and sell European brands such as the UK's sanitaryware brand Twyford , wooden flooring brand Egger, kitchenware brand Nobilia from Germany, while Tile Bazaar will source from India and China, he said.

The group owns ceramic tiles company H & R Johnson, which has 30 per cent share in organised ceramic tiles market, and BCIL will draw synergies from its operations. "We will sell Johnson tiles in our stores," said Narayan.

Tile Bazaar has stores in Mumbai, Pune, New Delhi, Ahmedabad and cities in Karnataka, Madhya Pradesh and Goa. Next in the pipeline are stores in Chennai, Vapi, Vijaywada, Guntur, Vizag and Ahmedabad which will be opened by early next year, the company said.

The $2.1 billion Rajan Raheja Group has companies such as R Raheja Properties, Exide Batteries, Hathway Cable, Asianet Satellite Communication, Outlook Publishing, Globus Stores, and joint venture companies such as Sonata Software, ING Vysya Life Insurance, JW Marriott and so on.