- Country: India
- Industry: Manufacturing
- Stage: Expansion/Growth
- Years in operations: 3, Employees: 8
- Investment size: $3,000,000 / min. $3,000,000
- ROI: 100% in 5 years
- Type of investment: Equity
We are looking to start advanced wood working industry to manufacture modular kitchen cabinets and shutters with the investment of $3,000,000.
Mr.Kitchens is a fully integrated modular kitchen solutions provider, started in April 2011 as a unit of MRK Metals Pvt Ltd. Mr.Kitchens is planning to manufacture almost 75% of the components that go into making a modular kitchen, the major strengths includes raw material sourcing to finishing. Mr.Kitchens' concept is based on offering a wide range of well-designed and functional modular kitchens at affordable prices, thus helping more people live a better life at home.
CSIL Milano has classified India as one of the 14 large furniture markets in the world. This is in view of the fact that India has a middle class population of over 400 million, with a purchasing power on the upswing. Modular kitchen market in India is still at a nascent stage but has tremendous growth potential. Market has been witnessing a growth rate of 50% YoY. Modular Kitchen in India has created a revolution for all the homemakers. Kitchen is that special place in every home meant to explore culinary passions and especially in India, everything related to Food is revered. As Home Décor and Home Interiors is gaining importance, the new concepts in Kitchen Decor making waves. One such modern concept of Modular Kitchen is gaining immense popularity in India.
Mr. Kitchens incorporates the latest trends in modular kitchens keeping the Indian cooking habits in mind. Mr. Kitchens’ modular kitchen systems are specially developed for the Indian cooking environment. The basic parameters considered for the design of kitchen systems are wet cooking methods, water seepage, servant handling, prolonged exposure to temperature variation and humidity, and attack from hazards like termites, borers, fungus and rats. The inputs are engineered to tackle most of the problematic areas to offer an ideal unit for tropical region especially to the Indian customers.
The company is planning to purchase the wood working machineries with the required investment to produce the kitchen cabinets in Coimbatore to reduce the operational cost. Respectively, we are able to offer wide range of products to the all segments of customers at affordable price.
Basically, we anticipate that by far our largest group of customers will be the individual house owners. These customers will be targeted through advertisements in the local newspapers, magazines, newsletter, via internet and Television that have over 80% audience. Civil engineers, Architects, builders, promoters and developers will be targeted through the direct meeting with the help of our marketing team. Advertisement will raise awareness for the company’s products.
We are planning to start 4 company-owned retail outlets in our region and 100 district-wise franchisee outlets all over South India within 3 years. After three years the monthly sales turnover will be $500,000.
We can offer 30% equity shares of our company and payback period is five years. The estimated ROI will be 20% per Annum.
The Coimbatore modular kitchen market has lot of unorganized competitors like carpenters, non-branded low quality producers, etc. These producers are making the kitchen cabinets in particle board, medium density fibre and pre laminated boards at low cost. These kitchens are not strengthened and will be affected by water seepage in two years. The branded quality producers of Italian (Veneta Cuisine) and German (Hacker) made modular kitchens also available in Coimbatore. But, only upper class people can afford the cost of these kinds of imported kitchens. These kitchens are available from Rs.3, 00,000 to Rs.8, 00,000.
Organized players have to spend on branding, realty, skilled labour, good quality of raw material, after sales service in order to maintain the goodwill of the brand. These expenses make the finished product, i.e. modular kitchens, very high priced. High price of the branded modular kitchens provide opportunity to the unorganized market that includes carpenters (70% of the market is unorganized).
We are planning to offer our kitchens starting from Rs.80,000/- onward to attract middle income customers. Organised players cannot offer such a low price.
Rationale for the deal
Since there are less number of organised product providers, we are planning to utilize the opportunity to achieve as low cost modular kitchen supplier in entire South India. We are planning to appoint 100-franchisee network all over South India to market our products. The major leading brands started appointing franchisee's all over India. We are in this industry for the past four years.
Use of financing
The investment is required to purchase the advanced wood working machinery, land and building and operational expenses.
Opportunity for the investor
We are looking for an investment of $3,000,000 for the period of five years. We are looking to offer 30% of equity shares of our company. The investor can involve in day to day business as a Director of the company.
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