Kohler looks to double India base to 200 cities

US-based kitchen and bath fittings major Kohler plans to double its base in the country to 200 cities in the next two-three years as it looks to tap the demand from tier-II cities.
"We have 350 stores at present and that is definitely our biggest growth driver. Every year, we are adding about 50-60 stores. We are present in a little over 100 towns and we propose to double that in two-three years," Kohler Kitchen and Bath India-Sub Saharan Africa Managing Director Salil Sadanandan told PTI.
"We are now going into the second tier markets and establishing our presence because thanks to our advertising and general awareness that we have created over the last 10 years, there is a fair bit of latent demand from these markets, which is encouraging," he said.

He noted that there is a lot of development and housing construction happening in the tier-II markets and the company wants to tap this demand.
"We are not seeing a real estate slowdown in the tier-II markets today. Beyond the top eight cities, there is no slowdown in activities," he said.
Kohler has associated with leading developers such as Oberoi, Lodha, Jaypee, Prestige and DLF, among others. It has also partnered hospitality chains like Hyatt, Westin and Taj Group.

The organised kitchen and bathroom fittings market is estimated to be Rs 7,600-7,800 crore and the industry has grown at a CAGR of 12-13 per cent over the last three years.

Kohler has grown at almost double the industry rate over the last few years, Sadanandan said.
"India is the fastest growing market and the company is looking at it being the third largest market in the next decade," he said.
Bathroom fittings currently contribute to the bulk of Kohler's sales in India.
The company has been in India for 10 years and has invested USD 200 million so far in the country. Sadanandan said it will look at investing a similar amount in the next 10 years.
It is also planning to establish a design centre in New Delhi by end of this year.

Kohler has two manufacturing plants in Gujarat spread over an area of 229 acres, and while they largely cater to domestic demand, the company also exports to US, France, Spain, Germany, North Africa, sub-Saharan Africa and SAARC countries.