Coram International, the Netherlands-based coordinated design bathroom company, is set to start operations in India from July this year.
The company, which set up a wholly-owned subsidiary in India in 2012, also has plans to set up a manufacturing facility for its flagship products in India, which is identified as the “sweet spot” for Coram. “There is good potential. But we would put up the plant once there is certain scale. India is likely to emerge as the manufacturing base for our operations in Asia over the next few years,” said Niels Pilaar, CEO, Coram International.
Huge population, coupled with affinity towards European designs, are the key reasons why Coram has decided to shift focus to India, said Pilaar. “Europe has become saturated and is declining as a market. Though China has the advantage of being the world’s largest population, it is not an easy market because of excessive Government interference,” he added.
The company would require about $10 million to set up a manufacturing unit which can be expanded depending on requirement. “The investment in India for a possible manufacturing unit is yet to be firmed up. It would depend on the time and scale. However, investments would come from the parent firm,” said the CEO.
India would be the first country outside Europe where Coram is planning to establish a manufacturing facility. At present, it has production units in Holland, Poland, the UK, Germany, France and Italy. It also has an assembly unit in Malaysia. Pilaar said Coram’s India unit could initially target markets like Indonesia and Vietnam.
By July, the company will set up two experience zones, to have direct consumer connect, in Delhi and the National Capital region. Later, it would look at other parts of the country, starting with cities like Ludhiana, targeting bungalows and other residences.
Coram’s Xtreme wellness bathroom set up costs about Rs 15 lakh, while its product range starts from Rs 2 lakh.
Coram offers the coordinated design bathroom solutions with the possibility of added sustainable Xtreme wellness. Pilaar said annual sales of more than 5,000 units would make manufacturing viable in India.
At present, Coram gets about 90 per cent of its revenue from European markets.
