Chindhy's Interiors plans JV with Europlast

Chindhy's Interiors has planned a joint venture with Italy's Europlast Design to manufacture in India a range of household extruded furniture for the world market.

The manufacturing base for the the JV would be in an Special Economic Zone or in the nature of an export oriented unit in Maharashtra.

Chindhy's director Firdaus Chindhy said after the launch of the company's latest products from the Europlast range for home storage and related segments, that his firm will manufacture the Europlast Italian range for the international markets.

"We will consider a location within the various SEZs close to the Mumbai port or set up our own Export oriented Unit (EOU)," said Firdaus.

"The company will become a production base for the West Asia, Japan and Australia markets," he said. The EOU may take up to two years' time, when the Italian partner will also contribute in terms of equity stake, Firdaus informed.

The company has brought into the market the range of Europlast storage products, shower cubicles and enclosures and kitchen and home linen cleaning options such as below-sink cabinets and clothes washing machines called laundries.

"We will project the products as solutions for the modern households as the upwardly mobile have been showing ever greater interest," he added.

The present product range, made from PVC resin based extrusions will be branded as Chindhy's Mobilitalia, which literally means 'furniture of Italy," he said, adding, that the company estimates the market size for these products at Rs 20 crore at the moment.

The range of products launched has been priced between Rs 3,000 and Rs 15,000, he said.

Chindhy's will procure material from Europlast and assemble in India the range of products.

"A couple of years down the line we will reach as stage when we do the extrusions ourselves and assemble the products in India," Firdaus said. He said the company has invested Rs 2.5 crore in the assembly plant in Pune and the joint venture will see equity coming in from Europlast Design as well.

Firdaus said the company will open a franchisee outlet in Bangalore to sell the Europlast range though the assembly unit will be located at Pune.

"We will open other outlets in the country eventually," he said adding that he saw a market size of Rs 20 crore for such products.

The company has been in talks with the builders, institutions, clubs, hospitality industry and the defence establishments for supplying the products, Firdaus informed.