Home Centre to have 25 outlets by 2014

Firms plans investment of Rs 300 crore, eyes Rs 700 crore turnover

Home Centre, the chain of furniture, home accessories and kitchenware outlets from Dubai based Landmark Group, is planning to increase the number of stores it runs to 25 from the current 15 by 2014 in India. The proposed expansion will attract an investment of Rs 300 crore going by current market trend.

Speaking to Business Standard after opening the company's 15th store in India at Chennai today, Mahesh Shah, president – Home Centre, said that the company would look at increasing number of stores to 25 by 2014 and a turnover of Rs 650–700 crore. In 2012–13 the company has set a turnover target of Rs 450 crore.

The company has been focusing the market in the Metroes and major cities, while it has also started off two stores in tier-II cities of Coimbatore and Mangalore as a test basis.

While Shah refused to comment on the proposed investment, going by market conditions investment to set up the said number of additional centres would require around Rs 300 crore.

Commenting on the Foreign Direct Investment (FDI) in retail, Shah said “while the industry will be benefited, it will not have any impact on the company, as it is not planning to raise funds from outside.”

Company’s market share is around to 7–8 per cent in organised home market at present, which is estimated to be above Rs 6,000 crore. The unorganised market is around Rs 94,000 crore, said Shah.

The first Home Centre store was launched in Gurgaon in 2005 and since then the brand has expanded its reach to various cities including Gurgaon, Bangalore, Mumbai, Noida, Pune, Chennai and Hyderabad. It currently has 15 stores in India with a typical floor space between 20,000 to 40,000 square feet.

Home Centre is a part of the $4.7 billion Landmark Group, which owns major international brands including Lifestyle, Centrepoint, Babyshop and Shoe Mart. Home Centre has also presence in Middle East and North Africa, according to the company's website.