1. EMC to Expand Ladder Network<br />Aluminium ladder maker Emirates Metal Concepts India Pvt Ltd (EMC), based in Noida, has an extensive network expansion plan on the drawing board. Informs Saeed Ahmed (india@emiratesmetal.com), managing director of the company, âWe want to take the distributorsâ count to 50 in a couple of months. Besides, we also have plans to appoint dealers in at least 200 districts across the country during the same period.â<br />According to Ahmed, distributors need to make an investment of 5 lakh for an inventory of around 250 ladders, while dealers can build an inventory of 100 ladders against an investment of 2 lakh. âOnce the dealings begin, we do have attractive payment terms to help our channel partners grow.â He informs that the company already has eight distributors, in Delhi, Bangalore, Chandigarh, Hyderabad, Srinagar, Lucknow, Bareilly and Malad (Mumbai), and 40 dealers. âAlso, we have depots in Indore and Chennai to ensure uninterrupted supply to our channel partners in the concerned regions. These depots are looked after by our sales teams.â<br />EMC India is a manufacturer of safety ladders, and it is the global marketing partner of UAE-based Emirates Metal Concepts FZC. The company started Indian operations in 2008. Two years later, in 2010, it set up its own ladder manufacturing unit in Gautam Buddha Nagar, Noida with a capacity of 10,000 ladders a month. âAt this facility, we are currently manufacturing two types of ladders - dual purpose and heavy duty extension. Our strength lies in quality as we strictly follow British standards. Made of extruded aluminium alloy sourced from UAE, these ladders meet BS:1474: DIN17615 on dimensions and EN12373-1 2001 on fi nish,â he asserts. âThe special alloy is prepared by mixing Mg, Si, Cr, Zn, Fe, Cu, Mn in specifi ed proportions.â<br />Ahmed notes that the product range has found a large market throughout the Middle East. âWe have adopted âsafe escalationâ as our motto.â He informs that these products are developed in medium weight, so that even a 20-feet long product can be easily carried by a person. âThey are suitable for construction sites, electro-mechanical works, shopping malls, for maintaining street lights, for painting and decorating buildings. These ladders feature knee-braced top and bottom steps to increase resistance and avoid damage due to dynamic drop, and high grade slip resistant foot pads. They are fi tted with slip resistant traction tread steps. They are rigid, sturdy and slim, and come with a 10-year manufacturersâ warrantyâ he elaborates.<br />At its Noida facility, EMC also manufactures strainers and mortise handles for its customers in the Gulf. âThese products would shortly be introduced in India, as we are currently studying the market,â says Ahmed. There are also plans to introduce PVC health showers in India. He informs that as of now the company is sourcing these showers from Italy for the UAE market.<br />Joining the League<br />Jaquarâs bold foray into sanitaryware could give sleepless nights to industry leaders<br />left0After successfully diversifying into various bath verticals like wellness, water heaters and cisterns, besides lighting, faucets major Jaquar & Company Pvt Ltd has set a much more ambitious goal. It has ventured into the sanitaryware segment and aims to emerge as one of the leading brands in the market. It has recently launched an entire line of wash basins, sinks and water closets pan-India. âWe have introduced two collections, namely, Jaquar that will cater to the mid and premium segments, and Artize which will take care of the super luxury segment,â says Parvez A Amin (parvez@jaquar.com), the companyâs senior vice president-sales & marketing.<br />Jaquarâs move has come at a time when the Indian bath and sanitaryware landscape is undergoing a sea change. First, the past decade has witnessed the entry of several domestic and international players such as Roca, Duravit, RAK, Kohler and Euro in the nearly 2,000 sanitaryware industry, which for long had been dominated by just three home grown names. But more signifi cant is the emergence of total solution providers. Hindware (544 crore), Cera (255 crore), RAK and Roca, all ceramic heavyweights, have steadily diversifi ed into non-core segments such as faucets, accessories and wellness products in order to leverage their strong brands. Jaquarâs move has been contrarian, it is the only company which has fi rst dominated the bath fi ttings segment, and then moved into ceramics.<br />According to Amin, the entry of Jaquar into sanitaryware is noteworthy. âWe are the only company that is offering such a wide range, right at the beginning of the launch of its sanitaryware. Our new range comes with 120 designs in Star White colour. After six months, we will launch the full range in Ivory.â On pricing, he adds, âThe company has priced the sanitaryware very aggressively. The Jaquar collection starts from 2,500 and goes up to 25,000, while the Artize price band is 35,000-1.5 lakh.â<br />But with so many companies already jostling for the total bathroom solutions space, is it safe for Jaquar to foray into this market, particularly since it has always been a leader and cannot hope to emerge at the top in sanitaryware any time soon?<br />Amin does not think that Jaquar is a late entrant on the scene. âOur decision to be a solutions provider is not sudden. In 1960, we entered the faucet manufacturing business, and gradually expanded our portfolio to over 2,500 products, including high-end fi ttings, health and wellness products such as whirlpools, showers, water heaters and lighting. Our move into sanitaryware is just another step towards strengthening our position in the bathroom arena. Considering the boom in the construction sector, the time is right for us to tap the sanitaryware market.â<br />Dismissing claims made by many other companies, he says, âNo company in India is a total bathroom solutions provider in the true sense. We are all set to become the fi rst in the country, once we include bath furniture in our portfolio, for which we have already started working.â<br />According to Amin, Jaquarâs sanitaryware is being sourced from original equipment manufacturers (OEMs) in Italy and China. âWe have tied up with reputed suppliers in these countries, who will produce under the supervision of our technical and design teams.â Explaining the rationale of engaging OEMs in these countries, he says, âFor the super premium Artize range we have chosen the Italian OEM, for its experience in manufacturing path-breaking designs and fi nishes. Our Chinese partners will be supplying sanitaryware which is high on quality, yet competitively priced.â Both ranges will feature superior fl ushing, anti-bacterial surface, and water saving technology.<br />Jaquarâs marketing mantra will be to connect swiftly with its target groups in order to create the demand. âWe have launched our marketing campaign, which is a mix of above-the-line (ATL) and belowthe- line (BTL) activities. ATL activities include communication through television commercials, hoardings, road shows, and in-shop merchandising like shop boards, posters and POPs to support dealers. We will also promote among builders, architects, designers and consultants by organising meets for them.â The company plans to invest close to 15 crore every year on marketing and promotion of the brand.<br />Strategy in a BoxPillars of Jaquarâs sanitaryware business 2 ranges across multiple price pointsAggressive pricing2,000 dealers ready to sign up15 cr promotion budget22 orientation centresPlumber training initiative<br />For BTL brand development, Jaquar has identifi ed plumber training as a major area of concern, and an opportunity. âWe have always given thrust to the issue of training. Jaquar has been organising training programs for plumbers and installers twice a week, in groups of four to fi ve. Now, we will replicate this program for sanitaryware also, wherein education will be imparted about installation, maintenance and troubleshooting. Plumbers are our greatest marketing research tool, and at training sessions we consistently receive valuable feedback from them about consumersâ requirements and preferences.â<br />left0The 22 orientation centres that Jaquar has established across the country also form a solid and continuous resource for brand building. âWe will be expanding fl oor space at our orientation centres to showcase our wide range of sanitaryware in a concept and functional environment.â<br />But the biggest resource that the company is banking on for success in its new venture is its pan-India dealer base. âAs faucets and sanitaryware can be marketed through the same distribution channel, we are banking on our 2,000 recognised channel partners. Almost all of them have agreed to sell our sanitaryware.â<br />Those familiar with Jaquarâs growth company will agree that the company has always taken bold initiatives, which have always succeeded. Pioneering premium pricing in faucets, launching new designs every year, coordinating accessory design with faucet ranges, controlling trade discounts strictly, lifelong customer support, launching own range with AO Smith geysers, all these have combined to make the Jaquar dealership the most sought after franchise in the market. Its original dealers swear by the company, having been with it for nearly three decades as family, and have prospered tremendously. It is not surprising that the company is leaning on them for its new venture.<br />With a turnover of 1,000 crore, Jaquar claims to command a 60% share of the estimated 1,500-crore organised bathroom fi ttings and wellness industry. Amin says that the company has been growing at a compounded rate of 30% over the last 10 years, and expects to grow by a signifi cantly higher rate in the next couple of years as a result of the new diversifi cation. âWith the sanitaryware industry expected to grow at a CAGR of around 22% for next fi ve years, we hope to do great business in this segment as well. We are expecting to derive nearly 20% of our turnover from this business and aim to be amongst the top three sanitaryware brands soon.â<br />âWe are Shaping Marketsâ<br />left0Hafele Indiaâs managing director Juergen Wolf (juergen.wolf@hafeleindia.com) is a quick learner. In the decade since he has been in this country, he has not only understood the intricacies of doing business here, but also deciphered what makes the Indian entrepreneur tick. Turnover of the company he set up has touched 150 crore, up 50% from the previous year, and next year it is likely to double.<br />In fact Wolf has a philosophy for succeeding in this country, and believes he is giving shape to a new work ethic. For a person who admits that he is German in mind and Indian at heart â he is married to an Indian â his second home may well be better off with him at the helm of whatever he is involved in.<br />On the eve of India Kitchen Congress, where he was to present his keynote address to Indiaâs leading kitchen professionals and businessmen, Wolf opened up to Sourcing Hardware in a rare interview.<br />â There is a growing understanding that displaying real life applications is more rewarding than simply pushing boxequot;
<br />How big is the Indian modular kitchen industry?The industry is indeed big, but there are no exact numbers available which can satisfactorily defi ne the market. The main reason is that this industry remains largely unorganised. There exist flying numbers between 2,500 crore to 5,000 crore, which clearly indicate that the size is good enough for more players to enter, and for existing ones to grow further.<br />Are Indians really receptive to the modular kitchen concept?People still have no idea what it means. A modular kitchen is made of standardised modules that repeat themselves in standard sizes. It is not a custom-made kitchen. A carpenter can never create a modular kitchen even if he tries to follow international standards. Work done by a carpenter by hand can never be as accurate as that of machinery. I am struggling with my own kitchen partners, to help bring the concept of modularity in India.<br />â My first enemy in India was the wet kitchequot;
<br />What obstacles are kitchen makers facing? Customisation of kitchens has been the biggest obstacle in the growth of this industry. Most of the kitchens being made are predominantly customised. Manufacturers make special kitchens for everyone. They do not realise that by working with standardised modules and hardware, it would take less time to simply assemble everything together. Besides, we need to wake up and stop making everything ourselves. We have to instil the thinking that modular kitchens are faster to install, better in quality and much cheaper than a customised kitchen. But in India, standard sizes are not followed in kitchens.<br />There are very few kitchen manufacturers in India. Most of them are assemblers who buy the components and brand their own kitchens. But things are changing, as bigger players are getting into the game and offering quality while still controlling the prices. In the long run itâs not only about the product or the market, itâs about delivering volumes, which is not an easy task to achieve.<br />quot;
Customisation of kitchens has been the biggest obstacle in the growth of this industryquot;
<br />Are there other typicalities to the Indian market?My fi rst enemy in India was the âwet kitchenâ. The habit of washing the kitchen with buckets of water is tough to change. We have faced some interesting material challenges in India. There seems to be an obsession with plywood, which is preferred over particle board. In fact, India is the only country where plywood is used in kitchens despite the fact that it is comparatively more expensive than particle board, and also more susceptible to absorbing moisture.<br />Another product that is used often is solid wood. It not only turns out to be an expensive proposition, but also warps when it comes in contact with water. Solid wood is mostly seen in UK, as there they have a tradition of bespoke kitchens. Solid wood is a niche product, not a mass option.<br />Isnât it important to see what the consumer wants?The consumer simply wants to renovate the existing kitchen into a nice modern one. She goes seeking advice to an interior designer. Unfortunately, she wants the kitchen right now, that too in a customised format. Itâs impossible to supply a kitchen in just two weeks unless it is standardised. This urgency leads to customisation, which results in higher cost and less than satisfactory fi nish and features. Come on, a kitchen is made once in 15 years, so one should be ready to wait for at least fi ve to six weeks for a perfect creation.<br />quot;
A kitchen is made once in 15 years, so one should be ready to wait for at least fi ve to six weeks for a perfect creationquot;
<br />How do you see things changing?Mass production is the only way to delivering an economical product while maintaining its durability and quality. Modules of kitchens are delivered in large volumes in Germany. Companies there produce around fi ve lakh kitchens a year, as compared to the meagre annual capacity in India to produce 1,500 kitchens. There are smaller kitchen manufacturers in Italy which produce around 2,500 kitchens a year, and they make mostly boutique type kitchens.<br />As far as Indian manufacturers are concerned, I think Sleek and Timbor are on the growth trajectory, but as of now they are in a nascent stage. Benedetto Kitchens is doing a good job in delivering cheaper modular kitchens, even though they outsource the shutters. We are working in close collaboration with Benedetto to educate end-consumers about the benefi ts of modularity, and how good hardware can improve functionality and space utilisation.<br />How is Hafeleâs alliance with Blum faring in India?Hafele and Blum have been in a strong alliance since seven years. We are inseparable. We have also started our operations in Thailand and Vietnam. Hafeleâs hardware can be found almost everywhere. Blum can be found in 75% of all European kitchens. In fact, all Ikea kitchens are also Blum. Blum is an undisputed market leader for drawer systems and hinges. It has introduced the Aventos system, which is better, cheaper and more effi cient than any such product.<br />You may fi nd it interesting to know that all new developments at Blum are first used and tested out at the homes of its owners, only then are they brought to the market. In India the company takes pains to get installers trained by its own technical staff. In fact, Blum Indiaâs managing director, Maarten de Vries himself has been doing the job of training and educating people here.<br />Hafele and Blum make a great team in India, with our network and brandâs strength, and Blumâs products based on deep understanding of how kitchens are used. The only challenge had been the âchalta haiâ attitude, which has to be worked on. I have tried my level best to promote the culture of getting things right the fi rst time, of asking for perfection.<br />How has Hafele impacted the markets?We stumbled into the Indian market in 2001, when very little was happening in the country. The market boomed in 2003, when we were in the process of setting up base with a few hotel projects.<br />Across the South East Asian region, India was the only fl ourishing market where Hafele wasnât present in. We are present in Bhutan, Nepal, Korea, Japan, Taiwan, China and Australia. We have also opened up in Sri Lanka.<br />The change in the past ten years has been mind-boggling, as the market has been rapidly opening up. The whole concept of trading has changed, and there is a growing understanding that displaying real life applications, be it in kitchens or any other part of the house or offi ce, is more rewarding than simply pushing boxes.<br />At Hafele we see ourselves as shaping the market for modular kitchens. And we believe that the idea of modular kitchens will take anchor only when outlets proliferate. This is what we have been consistently working at, developing a channel of kitchen studios and design centres, and we expect to bring about a sea change within the next fi ve years.<br />What brings success at Hafele?Success is largely based on consistency. We came to India knowing what we wanted to do, since we already had a taste of this market through earlier distributors. Once we set up our business, we analysed and understood where we were lagging. And we havenât wavered. While other companies who came from overseas looked for volumes and large dealer networks, we kept our focus and continued building partnerships in a transparent manner. For us, success means the long run.<br />Within the organisation, our philosophy is to inculcate ethics and values in the employees. I live that myself. We have training managers to inculcate common values in all employees. Besides, individuals at Hafele get immense opportunities to grow, they just need to demonstrate their skills and talent. A great example is of our National Manager, who is just 32 years old. He began as a salesman and has climbed up the ladder to this stage.<br />How is your business shaping up?Nearly 50% of our business in India comes from the kitchen segment, while the other segments have shown signifi cant growth. We have added the segments of hospitality, lighting and appliances to our business, and plan to introduce sanitaryware by the end of the year. This will be apart from the bath fi ttings segment which includes showers and faucets.<br />In the appliances segment, we will soon launch built-in products including ovens, chimneys, hobs and coffee makers. Last year we introduced a range of furniture lighting, and the second phase will see the introduction of a new range of lighting.<br />How will you grow this business?We are driven by the franchisee model. It is not only for better sales, but to serve our customers better. Already we have 32 franchisee shops and plan to open 15 by the end of this year, and target at least 20 by next year. Of the 32, 15 are Compact Studios and 12 are Design Studios, while the rest are Kitchen Studios. Our aim is to build quality outlets with live and functional displays for a buyer to touch and feel, and experience. In fact we are currently looking for space to re-open our design centre in Mumbai. This would be our fl agship store in an area of about 20,000 sft, and will be named Hafele Functionality World.<br />Donât you feel the need for an Indian production facility?There are no plans yet for setting up a plant, as the volumes required are still missing. Besides, we are largely a marketing company and donât produce everything ourselves. This business model allows us to enter into strong partnerships with very quality conscious manufacturers across the world, and also respond to market opportunities much faster.<br />However, like all big players, we do have our plant in China which has enough capacity to feed the demand from India. This is backed by a 60,000 sft warehouse in Mumbai which feeds our distribution network.<br />Sourcing hardware<br />