Branded Furniture - India

November 2009

Executive Summary
Market
Branded furniture market is valued at INR XX bn in 20--; expected to reach INR YY bn in 20-The overall furniture market is a% unorganized Market for branded furniture in India is mainly concentrated in cities

Drivers:

Drivers & Challenges

Increase in Disposable Income Reduction in Import Duties Growth in Real Estate Sector Growth in Organized Retail Rising Quality Consciousness amongst Indian Consumers Growth in IT & ITES Sector Growth in Tourism

Trends

Forward Integration Kids Furniture gaining popularity Rising Popularity of Traditional Furniture Modular Kitchens Use of Recycled Wood Use of Innovative Materials

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Challenges:
Reduction in Timber Harvest FDI Regulations Market Restricted to Cities

Competition

Furniture companies operate both, through direct selling in the market and through distributors 3 tier selling & distribution model, comprising of the distributor, wholesaler and retailer is popular Market has witnessed entry of specialty furniture chains in furniture retailing
BRANDED FURNITURE MARKET - INDIA

Market Overview Drivers & Challenges Trends Competition Key Developments

BRANDED FURNITURE MARKET - INDIA

Furniture market in India is highly unorganized

Market Overview
Furniture market in India is highly unorganised with organized sector having b% market share Branded furniture market in India is mainly concentrated in cities Market is driven by increasing income levels and increased consumption of lifestyle products Key Segments:
Domestic furniture meant for home use Commercial furniture for office & hospitality sectors

Market Size & Growth

INR bn
200 150 100 50 0

Raw Material Preference

Material 3 r%

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c%

2008

2012

Key Consumer Segments

Segment 2 Material 2 q% p%

v%

u%

Material 1
Source: BRANDED FURNITURE MARKET - INDIA

Segment 1

Drivers & Challenges - Summary

Drivers
Increase in Disposable Income Reduction in Import Duties Growth in Real Estate Sector Growth in Organized Retail Rising Quality Consciousness amongst Indian Consumers Growth in IT & ITES Sector Growth in Tourism

Challenges
Reduction in Timber Harvest FDI Regulations Market Restricted to Cities

BRANDED FURNITURE MARKET - INDIA

Trends - Summary

Forward Integration

Use of innovative materials

Kids Furniture gaining popularity

Trends
Use of recycled wood Rising popularity of traditional furniture

Modular kitchens

BRANDED FURNITURE MARKET - INDIA

Major Players (4/5)

Player Business Description Company 1is promoted by the Company 4 and headquartered in Chennai Its manufacturing facility is located near Chennai and it has over r exclusive showrooms Its product range includes Bedroom, Living Room, Dining Room, Study room and Office Furniture Financials It reported a turnover of INR S bn and a net income of INR T mn Company 2 is based in Ahmedabad The company is a manufacturer and retailer of Solid Wood Furniture, Modular Kitchens and Doors with a distribution network comprising of franchisee stores across India Company 6, along with Company 7 have invested in the equity of the company It currently has q exclusive kitchen, furniture and door showrooms It plans to invest INR B mn to increase the number of its stores to m in the next y years Its product range includes bedroom, dining room, study room, living room and office furniture It has dealer outlets and showrooms in location 1, location 2, location 3, location 4, location 5 and location 6

Company 1

Company 2

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Company 3

Source: BRANDED FURNITURE MARKET - INDIA