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Winds of change are blowing in the modular kitchen sector, andthe future is likely to be full of pleasant surprises

The Indian modularkitchen industry is largely unorganised, and in the vice-like grip of carpenters and small manufacturers who are unable to adhere to recognised standards due to absence of appropriate technology. No wonder it is difficult to put a fix to the industry size and estimates range wildly from Rs. 2,000 to Rs. 20,000 crore. Though the smaller number appears more realistic, on factoring in appliances the picture changes considerably. We spoke to some key players of the industry to get a clearer picture.

Ramu Ramakrishnan (ramu@leitzindia.com), director of Leitz Tooling Systems India Pvt Ltd, a leading producer of tools for the wood machinery sector, says that the kitchen furniture industry has fared reasonably well in the last year, as most manufacturershave been operating at near full capacity. “The organised part of the industry is producing around 3,00,000 kitchens a year. Newer players have entered the field with small and medium scales. They usually produce about 10 kitchens a month. However, the industry continues to be in the grip of the unorganised manufacturers, and there are no really large playersin the fray.”

Anant Maloo (anant@timborhome.com), chairman of Timbor Home Ltd, says that the modular kitchen industry has recorded a 25% growth in 2011, while imports have increased by 50%. Timbor came out with an IPO last year, and at Rs 79 crore, is one of the largest Indian manufacturer and retailer of modular kitchens and furniture. “The organised sector controls only 15-20% in the Rs 20,000-crore modular kitchen industry of the country. But, we are witnessing that this share is growing rapidly.” Timbor won the ‘Retailer of the Year’ award at India Kitchen Congress 2011.

Rajesh Ahuja (rajesh@sleekworld.com), chairman of Sleek International, agrees that the market is dominated by unorganised sector, but differs on the numbers. He believes the market size is being overestimated. “The current size of the industry is Rs 2,000 crore, which has grown by 35% to 40% last year. This growth has come primarily from unorganised players, as the organised players constitute barely 2% to 3% of the industry.” Sleek is very aggressive in the market today, having achieved a ‘high recall brand’ status. In an innovative move, it has roped in celebrity chef Sanjeev Kapoor as its brand ambassador.

Pune-based industrial designer Lakesh Oswal (lakeshoswal@gmail.com) of Shubham Design Services feels that though the kitchen industry is growing rapidly, there is not enough focus on ergonomic design. “People of diverse ages and physical structures use the kitchen of the house. It is important that manufacturers recognise this fact and create designs to minimise fatigue and definitely not cause harm to their bodies.” Oswal asserts that kitchen manufacturers should adhere to globally recognised standards and offer kitchens that are truly modular. This, he says, is a case for certification of kitchen designers, which is a common practice in Europe and the US. He was winner of the ‘Kitchen Designer of the Year’ award in 2011.

All stakeholders agree that the biggest boost to the industry has come from the high-rise residential sector, as builders have started offering pre-fitted kitchens to add value to their apartments. Even in small towns builders are not shying away from experimenting with this concept. So, with residential development taking place almost uniformly across the country, demand for modular kitchens has literally got a jump start.

But while domestic manufacturers are enjoying this demand overhang, the situation has given a back-door entry to European manufacturers, who are faced with stagnating demand in their home markets. So, overseas suppliers are busy servicing project buyers, and leaving Indian companies to fight it out in retail. But this situation may change and the streets may soon become populated with global brands.

Another development is that the kitchen distribution channel has finally been acknowledged by the Rs. 6,000 crore appliances industry. This product category, also known as white goods, is dominated by global names including IFB, Whirlpool, Electrolux and Faber, which had been marketing their products through the traditional appliances network. Of late, however, they have aggressively started targeting the modular kitchen marketplace. The recent arrival of built-in appliances indicates that there will be greater cooperation between appliance companies and kitchen manufacturers in future, and the kitchen retailer will increasingly call the shots.  

All this and more will be talked about at India Kitchen Congress this year. So, mark your calendars and book your flights! In April, all roads lead to Delhi NCR.  

Mrinmoy Bhattacharjee