After launching its premium modular kitchen business in Bengaluru, electrical products maker Panasonic Life Solutions India on Friday announced the opening of its first premium L-Class Modular Kitchen franchise store at Ahmedabad.
The company looks to strengthen its position in India's Rs 4,800-crore modular kitchen market, which is part of the Rs 9,100-crore overall kitchen market in the country. Betting big on the fast growing housing demand in metro cities, along with tier 1 and 2 cities, Panasonic is eyeing 5 per cent market share in the next three years.
"In the first year, we plan to achieve sales of 600 units and open 11 stores across the country. Of this, about 400 units will be sold through bulk purchases by housing developers, the rest will come from the B2C segment. By 2020, we plan to achieve sales of 2,000 units. The market is expected to grow at a CAGR of about 20-21 per cent," said Dinesh Aggarwal, Joint Managing Director, Panasonic Life Solutions India Pvt Ltd, while announcing the launch of the franchise store here. It operates a company-owned exclusive store in Bengaluru. So far, the company has sold about 40 units, while it has contracted for about 250 units to be supplied to housing developers such as Brigade Group, Vaishnavi Group and Embassy Group in Bengaluru.
According to Aggarwal, factors such as space management, convenience, comfort and growing aspirations will drive the demand for branded modular kitchens. Currently, of the Rs 4,800-crore market, the organised market is about Rs 3,552 crore. Domestic brands have a market share of about 70 per cent, while 20 per cent is controlled by imported brands from Australia, Italy and Germany. Panasonic is the first Japanese brand to enter the Indian modular kitchen business.
The price range of the modular kitchen starts from Rs 6 lakh. The units will be completely imported from Japan. Currently, imports of the modular kitchen attracts 10.2 per cent duty. The company may look to appoint a local vendor for cabinet supply, but not before 2020.