Having entered the Indian market in early 2006, US-based bathroom and kitchens fitting major Kohler has clocked an impressive growth. The company said that India has now become its third most important market after US and China, and going forward, it aims to grow at a pace that is double the estimated market growth rate.
“The journey so far has been pretty good. Our CAGR for the last five years has been 2.5 times more than the industry.
We are beginning to see our bets paying off, both from the brand perspective and business,” said Salil Sadanandan, President, Kohler Kitchen and Bath India, Middle East and Sub Saharan Africa. “Going forward, our aim remains clear. That is, to grow at a pace double than the market growth rate,” he said.
The company also aims to double its market share from 10 per cent at present to 20 per cent in the next few years. At present, the organised bathroom fittings market is estimated to be `8,500-9,000 crore and the industry has grown at a CAGR of 9 per cent over the last five years.
The kitchen fittings market, where the company is not a major player, is pegged at Rs 1,000 crore. To achieve this growth, Kohler plans to double its reach in India, invest in brand building, launch new products and even expand its manufacturing capacity.
According to K&B Kohler group president Larry Yuen who recently visited India, the company will expand its capacity by setting up a new plant at its existing facility at Jhagadiya in Gujarat to serve its key global markets, besides meeting local requirements.
Kohler also has plans to add 500 stores in India in next three years. At present, it has over 500 stores in 115 cities and towns. However, slowing demand from the residential sector may impact the company’s growth target. Sadanandan too admits that residential business, owing to multiple reasons, has slowed down in recent years and it is the commercial segment that is drawing demand.
“Demand for our products in commercial office hubs such as Bengaluru, Hyderabad and Delhi-NCR has remained robust. Also, hotel business remains an important segment for us,” Sadanandan said.
On emerging trends
Historically, bathroom has been associated with blue and white colours, but now there is a strong preference for smart and intelligent colours
There is a big market for products that come in unique colours such as rose gold, French gold, brushed nickel and more, said the Kohler president for India operations