Modular Kitchen Business In India- Opportunity And Cost
Written by Shakti 7 Oct 2021
India’s GDP as well as per capita income are rising rapidly that results in the high growth trajectory of the modular kitchen-related business.
The modular kitchen business as a whole is estimated to grow more than 30% per annum.
If we talk at the macro level, the home improvement and modular furniture space look fairly attractive and the best opportunity in our nation. There is a direct relationship, though not proportionate, between per capita furniture consumption and per capita income of any country.
In India, furniture and home improvement segments are in a transformational stage nowadays.
It can be said that emotion and ergonomics are the new buzzwords about the modular kitchen business. The factors that are driving the growth of modular furniture-
Exposure to the western world
Limited time availability
Generally, consumers emphasize convenience, aesthetics, functionality as well as space efficiency.
The modular kitchen industry has an attractive investment proposition as the kitchen accounts for about 40% of the total spend on furniture in any home on average.
Thus, the kitchen is a large ticket opportunity for any furniture maker. By the nature of the modular kitchen business, primarily due to customization reasons, the kitchen contributes as a working capital industry. The modular kitchen business offers an excellent R.O.I. for any enterprise, having no inventory issues; also, goods are sold first and produced thereafter.
The modular kitchen industry is in a nascent stage in our nation and is one of the large players concerning other industries. This industry produces over 3,000 modular kitchens a day.
In India, the modular kitchen industry will reach a 15 times higher level in the foreseeable future, in the next three to four years. For this, there is a need for significant investment in large manufacturing set-ups in order to scale up and to be competitive globally.
Now is the time that Indian modular furniture manufacturers are thinking of something innovative and advanced, aiming to have sustainable businesses in the market. The manufacturers need to start strategizing on how to achieve volumes and entrepreneurs need to promote the concept of mass customization and standardization.
Thus, the kitchen business provides end-to-end solutions and will have a scope for kitchen exports in the next 8 to 10 years.
When it comes to the modular kitchen industry, the kitchen is a highly customized product. Mass customization is the basic rule for profitable growth in the modular kitchen business and also for delivering value to the customer.
Best Opportunities in Modular Kitchen/ Kitchen-Appliances related Business in India-
Stovekraft Limited: It is an ISO 9001:2008 certified company in the kitchen-appliances related industry in India. Stovekraft has two flagship brands- Pigeon and Gilma. Each brand has a unique customer proposition and different go-to-market strategies. These brands have their presence across the nation. At Stovekraft, everyone is driven by an indomitable spirit of entrepreneurship with the ultimate aim of building a 'Business of Businesses'. Stovekraft is a fully integrated enterprise having more than- 660 product portfolios; 34000 dealers spread across the nation; 14 countries globally. Currently, the company’s human capital consists of over 2,000 dedicated employees.
Investment Range: Rs. 5lakhs-15lakhs
Franchise Outlets: 160 – 300
Space Req.: 250 - 500 sq. ft.
Würfel: It is a young & energetic brand whose motive is to revolutionize the modular kitchen and home interiors industry. The company is paving a way for innovations- from kitchens made out of glass to kitchens carved out of stone. Its logo represents that it is modular by nature and each piece is handpicked from the best of Europe. Its modules resemble a cube and that's how the name Würfel has been derived. In today’s era, the name Würfel holds more than geometrical significance for its esteemed clients globally. The brand believes in delivering the best every single time and its motto is to enjoy & having fun with its revolutionized products. It is an opportunity any smart entrepreneur can utilize, as the modular kitchen industry is the fastest growing industry in India with a YOY potential, growing at the rate of 50%. Every showroom is an official studio of the company and all the studios with unmatched support and strong marketing activities help to ensure there is an increase in the turnover. The best in quality and the best in price, in turn, serve as the key for the high returns at Würfel.
Investment Range: Rs. 40lakhs-50lakhs
Franchise Outlets: 20-40
Space Req.: 1000 - 2000 sq. ft.
As per the data, about 70% of the modular kitchen market in India is unorganized and it is estimated to cross Rs 15,000 crore by 2023.
According to the forecast reports, the modular kitchen market in India is likely to grow at a CAGR of approx. 60% over the period 2021-2023.
Cost of Modular Kitchen Business in India
The modular kitchen segment today holds immense opportunity as the modular kitchen segment is a Rs 300 billion entity and is one of the emerging industries in India.
Entrepreneurs who are looking to invest in Modular Kitchen Business and can do the investment of up to Rs 50 Lacs can make money by setting up their exclusive studios or stores offering kitchen solutions under one roof. Furthermore, the entrepreneur should keep in mind that designs are customized and must follow a cost-effective approach. The planning is to purchase the woodworking pieces of machinery with the required investment to produce the kitchen cabinets, having less operational cost.
According to Industry experts, currently, the modular kitchen segment stands at around 1500 Crores globally, with Indian readymade kitchens sold at the rate of 10,000 units per month in our nation.
Some of the brands within this segment that are growing profitably are TDecor, Sleek World, IFB Ltd., Prestige Smart Kitchen and many more. The modular kitchen segment is expanding by partnering with dealers and franchisees all across the nation.
Thus, it can be concluded that the growth of Modular Kitchen Business in India is majorly a shift in terms of the increasing number of housing projects, entry of organized players, rise in incomes and a changing consumers’ view on home aesthetics.
The desire to have contemporary kitchens has created a promising business opportunity for prospective franchisees along with the rise in availability and affordability to have kitchen solutions at consumers’ doorstep.
For more details visit our website FranchiseBazar.com
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