The company hopes to treble revenues in one year from Rs 78 crore (Rs 780 million) in 2006-07 to Rs 220 crore (projected) in the current financial. Some of this growth will come from a renewed focus on retail through expanding the exclusive store format, like the one opening in Mumbai this week.
"We will take up the number of exclusive stores from the current six to 25 over the next 18 months," says Vinod Jain, managing director, Magppie International.
The brand, until now, has enjoyed its greatest exposure from its presence in multi-brand outlets (MBOs) like Westside and Shoppers' Stop across 25 cities, but Jain indicates that it might be time to phase out that retail avenue.
"Strategically, we're moving towards becoming a premium design-oriented brand, so the retail associations need to be right," says Jain.
Alternatively, he suggests the company may consider starting a mass-oriented product range exclusively for MBOs.
The more unexpected, albeit initially smaller, contribution to the company's revenue this year will come from its foray into manufacturing modular kitchen systems and complementary kitchen appliances, production facilities for which have been set up in Kundli, Haryana.
Branded Casa Magppie, and to be launched in October this year, the products will be retailed from large format (above 50,000 square feet) company-owned retail stores.
"The modular kitchen market in India is worth Rs 100 crore (Rs 1 billion) with most players either German or Italian. But with over 12 million apartments projected to be built in India and 75 million in the replacement market over the next five years, it will boom," predicts Jain.
For now, exports which make up 80 per cent by volume will continue to drive sales. Magppie is currently present in 2,000 stores across the US, Europe and Asia, including the Museums of Modern Art in Chicago and New York, and more recently Harrods in London.
"We employ 28 global designers for our international product range," says Jain of the company's successes with licencing global talent like Karim Rashid and Michael Graves.
In fact, Magppie is shifting its entire product design studio from Delhi to Copenhagen in June to tap into this talent pool. Initially employing six designers, the studio will eventually expand its horizons to offer design consultancy services to other non-competing brands. "We have a lot of great ideas for cookware, for example," says Jain.
If that weren't enough, the company is steeling itself for more diversification. Scheduled for 2009 is an entry into other modular systems like office furniture, for which Magppie is scouting for space in an SEZ to set up a factory.
Together with the modular kitchen venture, it will absorb Rs 120 crore of investment over the next year. "Magppie wants to be in every aspect of under-represented design there is," explains Jain.
© 2024 Rediff.com -