Artd’inox expands into modular kitchen space
With this, the Naveen Jindal-promoted JSL Lifestyle Ltd, will now be able to offer 360 degree solutions in the steel space - from manufacturing crude steel to end user lifestyle products to kitchen units as well as have a retail presence.
"Our modular kitchen will complement our line of products. It will also help us address the burgeoning home improvement and adornment segment," said Ms Deepikaa Jindal, Managing Director, JSL Lifestyle Ltd, a subsidiary of Jindal Steel. "This is our second foray into retail," said Ms Jindal. "We had our own flagship outlets but we closed it down. However, with retail as a segment taking off, we believe this is the right moment to go ahead with out standalone formats."
Artd'inox will begin with three stores in Delhi, Gurgaon and Mumbai. "We will be looking at both franchise and company owned stores to expand our presence. There is changing mindset towards steel and people are willing to pay for aesthetics," she added. The company said it will invest Rs 15 crore to make inroads into retail. Artd'inox has nearly 500 stock-keeping units in categories such as tableware, kitchenware, stationery products, bar and among others. The products are priced between Rs 150 and Rs 11 lakh upwards (for the modular kitchen range).
The company said it is looking at its modular kitchen as a major revenue booster. "It is low volume high margin business. We have also added additional capacity to our existing line in Rohad (Haryana). Besides this, we have also tied up with international kitchen brands like Faber, Franke and Hettich." Artd'inox registered a turnover of Rs 100 crore for year ending, March 31, 2012. Ms Jindal said the company is looking at a turnover of Rs 150 crore next year. Currently, 50 per cent of its sales comes from exports, while 10-12 per cent comes from institutional sales while the balance comes from retail sales.