Business services Feb, 01 2014

Business of showering profits

India is set to become the second largest consumer of sanitary ware products in Asia-pacific region as per the reports of 'India sanitary ware market forecast & opportunities, 2017.' With the sanitary ware market in India expected to grow immensely, let's

By Yamini S Verma, TFW Bureau
Sr. Sub-editor
Business of showering profits

Be it the earliest evidence of urban sanitation in Harappa, Mohenjo-daro or the recently discovered Rakhigarhi, Haryana of Indus Valley Civilisation, the proper urban sanitation systems had always been the matter of concern for the human civilisation. But that is not all. The same hygiene affair in today's era has evolved as the sanitary ware industry and is offering hefty profits to entrepreneurs. Here is a peek-a-boo in the desi market of sanitary ware and faucets that is attending influx of videshi brands via the franchising route.

As per the report of TechSci research, a global market researcher and consulting solutions company, the sanitary ware market in developing countries like India and China has been growing tremendously for the past five to six years. However, in comparison the growth is stagnant in the matured markets like US and Europe. The construction growth in China made it the largest toilet market globally in 2010.

Escalating market

Affluent living standards and the wind sway from the west has given the consumers a bandwidth to spend more money specially on bathroom designs, interiors and faucets. With India being a huge market for residential projects and real estate, the driving winds are favourable for sanitary brands offering innovative products and designs in the market.

According to 'India Sanitary Ware Market Forecast & Opportunities, 2017', in the coming years India will witness huge improvements in the sanitation level.  India is set to become the second largest consumer of sanitary ware products in Asia-Pacific region. The sanitary ware market in India is expected to grow immensely. The government initiatives and boom in the real estate sector will further contribute to the growing demand of sanitary ware products in the country.

Brands par excellence

Talking about a few national and international sanitary ware brands that operate in India including Parryware, Bathline India, Cera, Roca, Jaquar, Hindware, Soncera, Johnson India, Orient Sanitary ware, Beljino and many others have strengthened the retail market of contemporary sanitary ware. They have not only managed to create a consumer base for bathroom delights but have given a new dimension to interior furnishing and décor of the house.

If studies are to be believed, the Indian sanitary ware industry has grown remarkably with the change in lifestyle of people. In the last five years, there has been a noteworthy growth in the high-end sanitary ware market. With so many international brands making their way to India via the franchise route, the indigenous customer or end user wants the best of the world and they are ready to pay the price too.

Caroma and Coram are amongst the two big international players in sanitary ware industry which offer designer and delightful collection of contemporary bathroom fittings and faucets. Both of the brands are operational via the franchise business model in India and are now aggressively looking at increasing their presence across the country.

Unveiling avenues

Caroma, Australia based premium bathroom interior and faucet brand under the flagship of Claytan Australia, believes that the concept of contemporary sanitary ware sector has emerged over the years. On this Aftab Ahmed, GM, International Sales & Marketing, Claytan Australia (Caroma) says: “We decided to come into the Indian sanitary ware market in January 2013 via the franchise route. We are already present in Hyderabad, Mumbai, Delhi and Ahmedabad. We are also in talks with some people for the other tier-I & II cities.” Caroma now seeks franchisees for the brand's expansion.

Another sanitary ware brand, Coram India is a 100 per cent owned subsidiary of Coram International, a leading European conglomerate which has interests in various businesses. Coram India's concepts will be an extension of Coram International's thoughtful attempt in bringing life to the world of bathrooms.

The brand has complete collection of ceramic, chrome, glass and furniture finished fashion in the bathroom.  The Indian operation head quartered in Gurgaon was incorporated in July 2012. According to Rajnish Ohri, Managing Director, Coram India: “Wellness is seen as a perfect symmetry of the physical, mental and spiritual being that bestows one with a sense of peace and welfare. Our products have been successful in helping our customers unwind after a hard day's work.”

Coram is operational via franchise stores i.e two in Delhi, one in Gurgaon and one in Jaipur, currently. While it is in the process of opening two stores, in Jalandhar and Dehradun.

Growing together

The major growth driver has been the change in the way people look at bathrooms today. Ohri also opines that the attitude has changed immensely. “Bathroom is no longer a place to only bathe but it is about relaxing too. This shift in the ideology has helped people see a different side to the bathroom story,” he adds.
However, both the brands are offering lucrative business opportunities to the franchisees and would lend a helping hand by providing proper and adequate support from time to time. All they are looking at is that the franchisee should have a good display area to represent and to have some stock of products for order.

Future roll out

The Future expansion plans for Coram India are majorly centered around the markets such as Delhi NCR, Rajasthan and Punjab. It is also actively looking at Mumbai and Bangalore becoming the next big markets for sanitary ware. The brand has been looking at tying up with some major projects coming up in these areas apart from building strong relations with individual designers and design firms.

While Caroma is looking forward to have a franchisee network at the state level and distributors in tier-II cities. “We look for a showroom of a reasonable size in a prominent location of the sanitary ware or building material market in the respective city. Stock holding will be discussed according to the city or state,” says Ahmed.

Franchise facts:

Brand Area Investment
Coram 2000 sq.ft Rs.30-40 lakh
Caroma above 100 -

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