Hind­ware, Jaquar see af­ford­able hous­ing scheme boost­ing their sales

Hindustan Times (Chandigarh) - Estates - - FRONT PAGE - Deepti Govind deepti.g@htlive.com

BEN­GALURU: Bath­room fix­tures mar­ket leaders Hindustan San­i­tary­ware and In­dus­tries Ltd (HSIL Ltd) and Jaquar and Co. Pvt. Ltd ex­pect to ben­e­fit from the re­cov­ery in the real es­tate mar­ket and the govern­ment’s fo­cus on af­ford­able hous­ing.

Both firms ex­pect their value or eco­nom­i­cally-priced brands to grow at a faster clip than those in higher price seg­ments.

HSIL ex­pects the ba­sic port­fo­lio un­der its flag­ship Hind­ware brand and econ­omy brand H Vitre­ous it launched about a year ago to gain.

H Vitre­ous in par­tic­u­lar is ex­pected to dou­ble rev­enue growth in 2017-18 and 2018-19 from the pre­vi­ous years.

The brand was launched about 17 months ago and earned Rs40 crore in rev­enue in 2016-17.

Jaquar ex­pects a sim­i­lar curve for its Essco value brand, which earned Rs260 crore in rev­enue in 2017-18. It is ex­pected to grow 38.46% to Rs360 crore in 2018-19 and hit Rs800 crore by 2022.

HSIL is the No.1 in terms of mar­ket share in the bath­room and san­i­tary­ware mar­ket, while Jaquar ranks fourth, ac­cord­ing to data from Euromon­i­tor In­ter­na­tional.

“We are fairly placed as a coun­try be­cause growth is not stop­ping any­where—in lux­ury, pre­mium or value. But the real suc­cess story will come from af­ford­able hous­ing, from peo­ple who want to get two-bed­room and small-bud­get houses, there we def­i­nitely see Essco click­ing,” said San­deep Shukla, Jaquar’s mar­ket­ing head.

For HSIL, 70% of its rev­enue comes from non-pre­mium brands, with a ma­jor­ity con­trib­uted by its Hind­ware fam­ily.

The Hind­ware fam­ily in­cludes prod­ucts that are a notch above en­try-level in terms of pric­ing and stretches into the pre­mium seg­ment with its Hind­ware Ital­ian col­lec­tion.

Within the af­ford­able hous­ing space, there are two types of build­ing ac­tiv­ity tak­ing place, said Man­ish Bha­tia, pres­i­dent of the build­ing prod­ucts division at HSIL.

“Some builders choose very ba­sic fix­tures and cut down on space and frills but won’t com­pro­mise on qual­ity, and that’s where Hind­ware comes in. But en­try-level build­ing firms want just branded prod­ucts and that’s the space H Vitre­ous op­er­ates in,” Bha­tia said. Fix- tures for an en­tire bath­room—a very ba­sic wash basin, tap and a work­ing closet etc.,—can be done us­ing the H Vitre­ous brand for just Rs3,500, he added.

When it comes to Jaquar, its epony­mous pre­mium la­bel ac­counts for 65% of the firm’s to­tal bath fit­tings sales while its lux­ury brand Ar­tize makes up around 15%. Jaquar’s value brand Essco rakes in the rest.

The govern­ment launched its “Hous­ing For All by 2022” pro­gramme in 2015, with the Prad­han Mantri Awas Yo­jana as the an­chor.

Sev­eral de­vel­op­ers have been ven­tur­ing into the af­ford­able hous­ing space due to the po­ten­tial sales th­ese projects may gen­er­ate and to tap into re­cent govern­ment in­cen­tives.

This month, Ashok Pi­ra­mal Group firm Penin­sula Land Ltd, known for its lux­ury res­i­den­tial projects in Mum­bai, ven­tured into af­ford­able hous­ing with a project in sub­ur­ban Pune.

Also last month, Ben­galu­rubased Brigade En­ter­prises Ltd said it has ear­marked around Rs3,000 crore for build­ing af­ford­able houses.

Oth­ers rang­ing from Na­tional Cap­i­tal Re­gion-based de­vel­oper ATS Group to Mum­bai-based Group Satel­lite have also en­tered the space this year.

“With the num­ber of hous­ing projects and the num­ber of loans be­ing taken for af­ford­able hous­ing, and the govern­ment’s push, I think the (growth) num­bers tar­geted by the bath­room fix­ture com­pa­nies are quite achiev­able,” said Har­min­der Sahni, founder and manag­ing di­rec­tor of re­tail con­sul­tancy Wazir Ad­vi­sors.

But that’s not to say that the pre­mium and lux­ury mar­kets are not grow­ing be­cause those are do­ing well in value terms, Sahni added.

In­deed, Jaquar ex­pects rev­enue from its lux­ury la­bel Ar­tize to grow 44% to Rs180 crore in 2018-19 on an an­nual ba­sis.

HSIL’s im­ported lux­ury brand Queo earned Rs55 crore in 2016-17.

The com­pany’s bath­room fix­tures un­der that brand start at around Rs1 lakh and can go up to Rs10 lakh.

Last year, HSIL also felt there was a mar­ket to be tapped just below the lux­ury seg­ment and, thus, it launched a su­per-pre­mium la­bel called Alchymi in col­lab­o­ra­tion with de­signer Man­ish Mal­ho­tra.

Bath­room fit­tings un­der Alchymi start at around Rs75,000 and can go up to Rs3.5 lakh.


De­vel­op­ers are ven­tur­ing into the af­ford­able hous­ing space

Newspapers in English

Newspapers from India

© PressReader. All rights reserved.