Monday, March 01, 2004

“We are selective about where we stock”

Interview with Rajiv Merchant, CEO, Portico New York, India on the home décor market in India

How important is the festive season for you?

For any company in this category, this season accounts for nearly 50 to 60 per cent of the annual turnover. Most of us stock up for the season and look for returns. We have an advertising budget of nearly Rs 4 crore and are aiming for a turnover of Rs 12 crore.

Do you normally reach the market through the retail route or through your flagship stores?
In Pune, we have no flagship stores except the one at Shopper’s Stop. In
Bangalore, however, where we had the real estate, we have three. However, our plans are to expand the retail route. Add to this the fact that major furniture stores generate 30 per cent of their sales through home décor products including bath products. We are also selective about where we stock our products.

Who is your competition?
For us, Bombay Dyeing is a competitor. Currently, they account for Rs 60 crore of the market. But an even bigger competitor is the unorganised sector that is responsible for the rest of the Rs 1800 crore bed and bath market. But we look at the opportunity that exists and are sure that this is the right time to enter this market. The next player will have to invest even more to make a mark.

Who are responsible for your designs?
We have an internal design team that creates the designs. We don’t want to go in for high-flying designers and would rather invest in creating a name of our own. Portico is an investment and we need to get it to a certain level. We take on some of the best designers from places like NID and also work with international design houses for the best designs.

What are your plans for the future?
Pune is an important market for us and we are bullish about it. We have plans to expand to 15 outlets soon. We believe that Pune,
Bangalore and Hyderabad are the ideal markets for promoting anything new.

What is the company’s financial situation like?
We are an export company and are worth Rs 300 crore. We have been supplying to brands like Fubu and Dockers and also have a presence overseas.

As published in The Herald, Pune (March 2004)

Posted by Scribbler at Monday, March 01, 2004