Summer Internship Project Report

On

Study of Market Potential of modular Kitchen in

India

In partial fulfillment for the award of the degree of

POST GRADUATION DEPLOMA IN MANAGEMENT

A PROJECT REPORT
SUBMITTED BYVIKAS SHARMA
PGDM-II YEAR

UNDER THE GUIDANCE OFDR. MAUHA DATTA

DECLARATION
I will take pleasure in declaring that the project work that is undertaken by me is an original
and authentic work done by me. This project is being submitted for partial fulfillment for
award of degree of Post Graduate Diploma in Management from INSTITUTE OF
MANAGEMENT STUDYES, NOIDA.
The content of this report is based on the information collected by me during my tenure at
MONARK INDIA LTD. at Gurgaon for eight weeks of training dated from 09 th of June to
08th August 2014.

Vikas Sharma

Company CERFICATE

ACKNOWLEDGEMENT

I express my sincere thanks to my project guide Mr. David Virmani at Operations in

Monark India Limited at Gurgaon, who has been guiding force to my report on Study of
Market Potential of modular Kitchen in India.
I would also like to thank to all of my friends and colleagues for their support and
encouragement in finding out material for this project report, without their thankless support
and efforts, making this report would have been impossible for me.
I am also thankful to Dr. Mauha Datta, (IMS- Institute Of Management Studies , Noida)
for providing me the required facilities in the Department.
I would like to thank the whole respondents who provide me the best knowledge and for their
help and cooperation throughout the project.

Table of content

1. Executive summary
2. Introduction
a. Industry Profile
b. Organization Profile
3. Need for Study
4. Literature Review
5. Objectives
6. Research Methodology
a. Research Design
b. Sample Design
c. Empirical Analysis
7. Findings
8. Competitive Analysis
9. Suggestions and Recommendations
10.

SWOT Analysis

11.

Conclusion

12.

Bibliography

EXECUTIVE SUMMARY
The modular kitchen market in India is expected to continue to record significant growth over
the forecast period. The growth is primarily attributed to an increase in the number of housing
projects, rising disposable incomes, changes in lifestyle and the emergence of nuclear
families. Products are also expected to become more affordable with a variety of pricing
options, and growth in the organized retail sector, changing perspectives on home aesthetics,
increased incomes and a rise in the number of working women are also expected to drive
growth.
The report provides top-level market analysis, information and insights into the kitchen
products market in India including:
- In-depth analysis of the kitchen products market
- A detailed analysis of market attractiveness, covering the key trends, drivers and challenges
- Detailed insights into the regulatory framework, market entry strategy, product innovation
and marketing strategy relevant to the kitchen products market

INTRODUCTION

ABOUT THE COMPANY - Monark is a one stop solution for all interior product and
service requirements catering to the residential and commercial Projects and retail channels.
Monark offers its products and services to customers globally through a worldwide sales
network and branch offices located at Delhi (India), Barcelona & Jaen (Spain), Shanghai &
Shenzhen (China). Today it has manufacturing and administrative operations both in Europe
and Asia.
Our overseas brands leadership is based on innovation, latest technology, quality
and warranty on its products.

WHY MONARK?
Vitality and success are the growth drivers for any company. Over the years Monarks
exponential growth is the natural consequence of our determination to pursue our strategies
and our quest of knowledge.
Each innovation we come up with springs from the constant stimulus provided by our
customers. This knowledge is an asset that is fed back into the cycle and circulates
throughout all levels of employees, independent workers, customers and suppliers so that it
is always available with someone who works with us.
Following are some of the reasons for which you should look for us:

Monark India Ltd has gained respect for innovation, creativity, modern design and
high quality reliable project solutions for its customers in the global MARKET with
its highest quality International brand and product solution with over 50 years of
Manufacturing, Design and Project solution expertise .
Our designing hubs having collection of designers equipped with cutting edge
technology platforms and well-trained employees coupled with high quality
service exceeding productivity & time management.
For all our Customers, we offer the best solutions inspired by European aesthetic
suited for the Indian life style with innovative quality products and processes.
The reinvestment of profit as the basis for consolidation and future innovation and
development.

Need for Study

The relevance of the Market Potential of modular Kitchen Industry is to analyse the
availability scope into this industry. Detailed study of the dew of the major players in
the market. Find out the types of brands they use, the warranty and guarantees
provided by them, the average cost of one single Modular Kitchen, the delivery time
and so on. The Market Research conducted was a completely competitive analysis
where I covered the Gurgaon Location. During research we came out of the various
interesting facts and figures which we will discuss in the following pages. But before
we move ahead lets understand the meaning of the modular kitchen.

LITERATURE REVIEW
Modular Kitchens are based on functional practicality. The onset of modular kitchens in the
Indian furniture market have spelt a consciousness that even kitchens can have a style
statement and at the same time be comfortable, efficient and elegant. Convenience, efficient
use of space, and lifestyle changes has increased the demand for modular kitchens today.
Opportunities exist, not only with domestic players but with international retailers as well.

Stands at around Rs. 2,500 Cr.

Indian readymade kitchens currently sold at the rate of 10,000 units per month in the
country.

Expected to grow 10 times in the next three to four years.

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.

It is largely unorganized with the presence of local and small players. Unorganized
market includes carpenters making self-designed kitchens based upon the
requirements of the households.

Modular kitchens are customized based on the requirements of the consumer. Based
on the need of the consumer, it can be set up with various accessories like chimney,
burner etc.

Kitchens account for 40% of the furniture and fittings industry. Products in this market are
largely focused towards establishments in urban India.

WHAT IS MODULAR KITCHEN?

Modular Kitchen is a term used for the modern kitchen furniture layout consisting of modules
of cabinets made of diversified materials which hold accessories inside, which can facilitate
the effective usage of the spaces in a kitchen. Normally the units which are kept on the floor

are called floor units or floor cabinets on which a kitchen worktop made of granite,
marble, tile or wood has been laid for creating spaces for varied activities in a kitchen.
The units which are held on the wall for storage purposes are termed as wall units or wall
cabinets. In small areas of kitchen in an apartment, even a tall storage unit is available for
effective storage.
Modular kitchen normally constitutes wooden cabinets, counter tops, internal accessories,
electro domestic gadgets like chimney, hob, built-in-oven, sink with or without drain board
and in some cases a refrigerator, dishwasher or other gadgets.
The designer normally designs the space using modules of standardized/customized sizes to
suit individual spaces.

Now the next question is that a Modular Kitchen is a Necessity or Luxury??

IS MODULAR KITCHEN A NECESSITY OR LUXURY?

They say cooking is an art. How about dressing up your culinary studio to bring out the best
in you? Kitchen solutions offer myriad ways to style this part of your home sweet home.
The kitchen has earned lot more character than the traditional rasoi today. It has become a
multi-functional area of a house, which apart from being the cooking space, doubles up as the
showpiece of the house, dining space, comfort zone or the special corner of your party.
Needless to say, it deserves special treatment when you are planning to redo your house or
styling a new apartment.
A modular set-up and state-of-the-art appliances, is what makes a kitchen the special corner
of the house, lending it a multi-faceted character and reflecting the personality of the
homemaker. With the concept of an open kitchen becoming a norm in new constructions,
kitchen solutions become a basic requirement and a modular set-up, complete with a chimney
and a hob, close to a necessity.
"Once a growing trend, it is now a much needed asset, if you want effective storage,
convenience, exquisiteness and comfort," says Sunaina Kamboj, a housewife who is all set to
graduate to a modular kitchen soon. "With a chimney for effective smoke exit, expediency of
storage and usage and proper space for vessels, cutlery and containers, a modular or a semi
modular kitchen is all about convenience, ease, handiness and luxury, of course within your
budget. It is sure to save your time and effort," she is convinced.
"The utility and functionality a modular kitchen offers will make it a necessity in the times to
come", says Barkha S, a Mumbai-based interior decorator. "It is where the majority of money
is going when you design a home," she adds.
Ayesha Dodeja, a kitchen design consultant from a Mumbai suburb agrees. "Kitchen design
solutions range from Rs 50,000 to 20 lakhs. We get clients who want to redo their kitchens
right from the scratch - starting with getting a granite slab and chimney, to hobs, automated
drawers and plumbing. There are some who just want modular cupboards in their new
kitchen." On an average, people opting for a modular kitchen, invest anywhere between Rs 12.25 lakhs, while there are a few takers for high-end solutions.
Depending on one's budget, space and lifestyle demands, one can choose from a variety of
innovative, eclectic and functional designs, imparting an unique character to one's kitchen
and adding to the personality of the house. "The ergonomically designed, touch-sensitive
automated drawers and over-head cabinets are the latest fad, which might be slightly heavy

on the pocket but completely worth a one-time investment," informs Dodeja, who is in the
business of designing kitchens.
Fresh and vibrant colours are in. "Lime green, black currant and berry branch are high-gloss
laminates," adds Dodeja. Depending on your budget, one gets to choose the outer material,
ranging from medium density fibre, marine ply, matte finish, high-gloss finish, texture or
fabric finish. For a luxurious look and feel, one can go in for the higher-range lacquered
finish or the German acrylic finish. The number and type of drawers, special cabinets and
space-effective modules strictly depend on the budget and space.
"Kitchen is truly the heart of the home and the wall between the living room and
kitchen is breaking with this concept," says Sanjeev Wadhwa, country manager,
Fisher & Paykel. "The trend of premium or luxury appliances is growing and is
catching up fast, with global exposure and more and more imported modularkitchen brands coming to India. There is also a growing interest of consumers
who want a seamless 'living and cooking' space, making the kitchen more fun
and friendly. The focus is on functionality and ergonomics, and the main areas of
development are energy efficiency, green technology and sustainability, with a
tinge of never-before used colours and combinations," he points out.

Objectives

My research objective is to find the market potential of modular kitchens.

To analyze the growth of the modular kitchens in Gurgaon.
To develop and apply an appropriate research methodology to know the recent
trends for modular kitchens.

WHAT IS MONARK INDIA LIMITED?

We have understood the concept of Modular Kitchen, its background and evolution, the
reasons behind the rising demand of the modular kitchen, the various competitors in the
market and the brief about their company, the threats and the opportunities available and its
future in coming years. But the question is where is MONARK INDIA LIMITED standing
in this competitive market? Lets have a glimpse about the company and my role into this
company.
Overview
Monark is a one stop solution for all interior product and service requirements catering to the
residential and commercial Projects and retail channels.
Monark offers its products and services to customers globally through a worldwide sales
network and branch offices located at Delhi (India), Barcelona & Jaen (Spain), Shanghai &
Shenzhen (China). Today it has manufacturing and administrative operations both in Europe
and Asia.
Our overseas brands leadership is based on innovation, latest technology, quality and
warranty on its products.
Why Monark?
Vitality and success are the growth drivers for any company. Over the years Monarks
exponential growth is the natural consequence of our determination to pursue our strategies
and our quest of knowledge.
Each innovation we come up with springs from the constant stimulus provided by our
customers. This knowledge is an asset that is fed back into the cycle and circulates
throughout all levels of employees, independent workers, customers and suppliers so that it
is always available with someone who works with us.
Following are some of the reasons for which you should look for us:
Monark India Ltd has gained respect for innovation, creativity, modern design and
high quality reliable project solutions for its customers in the global market with its
highest quality International brand and product solution with over 50 years of
Manufacturing, Design and Project solution expertise .
Our designing hubs having collection of designers equipped with cutting edge
technology platforms and well-trained employees coupled with high quality service
exceeding productivity & time management.
For all our Customers, we offer the best solutions inspired by European aesthetic
suited for the Indian life style with innovative quality products and processes.
The reinvestment of profit as the basis for consolidation and future innovation and
development.
Vision
To be a leader as interior solution provider at all levels of production, distribution, brands
position and installation services by delivering high degree of satisfaction to our clients in
residential, hotels, commercial buildings and retail sectors.

Mission
To be recognized in the market place as a quality driven innovator in interior products design
and manufacturing by offering integrated interior solution adapted to Indian customer. We
will be offering best quality of products and services and achieve market differentiation with
emphasis on our European accent. We will be servicing our client with both our innovative
design and reliable project management expertise.
Values
Our philosophy rests on three core values: Creativity, Quality and Reliability
We strive to be innovative in our approach.
We treat people with dignity and respect.
We promote positive relationship with our customers and shareholders.
We strive to develop professionalism and ensure personal growth of our employees.
We are committed to our vision and stay true to our core values.
We are committed to protecting our environment.

RESEARCH METHODOLOGY
The study incorporated a research to find out the various kinds of brands used by the various
modular kitchen companies, the delivery time and the average cost of the kitchen. This
research was preliminary and aimed to serve as a starting point for further marketing

strategies to be pursued by the company. The research was exploratory in nature with the
objective to gain insights regarding the main factors for further targeting their marketing
campaigns.
Research Method-Primary & Secondary Method
The information contained in this report is based upon both primary and secondary sources.
Primary research included interviews with kitchen hoods manufacturers, channel partners,
and consumers. Secondary research included an exhaustive search of relevant publications
like newspapers, websites, and proprietary databases.
Field Work
The researcher visited the various stores of Modular kitchen in Gurgaon including all the
major players and local players of modular kitchen. This research helped the researcher to
understand the various types of brands being used for the different components of the
modular kitchen such as brands for type of wood being used, the hinges, the average cost of
the kitchen, the warranty being provided for the overall kitchen, and so on..

EMPIRICAL ANALYSIS
Modular kitchen industry is a booming business in Gurgaon
GURGAON: IF YOU thought Gurgaon is a city inhabited and dominated by IT nerds who
virtually live out of their laptop cases, think again. Modern housewives here have pipped the

geeks to the post with a wide margin. At an annual growth rate of 40 percent, the business of
kitchen appliances is head and shoulder above the IT industry in the city. And modular
appliances, which revolutionized the lives of homemakers with ease and elegance, mean
serious business for the NCR entrepreneur.
"When we started the modular kitchen business in 1994, we made not more than 10-15
kitchens per month and that too only for the elite," discloses Surjit Kumar Sharma, director of
Gurgaon-based Lispo Kitchens, the first major player to set shop in the state. "Then the realty
boom changed the rules and numbers of the game drastically. At present we are catering to a
demand of 60-70 kitchens per month," Mr. Sharma said.
Mr. Sharma claims the modular kitchen industry at present is worth Rs 1000 crore in India.
Other than realty, growing acceptance to multinational concepts and high affordability were
other reasons that led to the exponential growth of the modular kitchen industry in Gurgaon
in the past decade, he adds.
A modular kitchen is basically a range of fixtures/cabinets, which are put together in a
planned manner that makes kitchen tasks easier. They are usually designed to suit the
customer's preference as per the space available in one's home. One can choose from a
variety of colours and patterns.
A modular kitchen comprises cabinets and drawers which vary as per the availability of
space, built-in covered baskets, dishwashing machine, chimney, cooking range/stove,
microwave oven, and washbasin. Wood, lacquer glass and laminates are used for the cabinets
and shutters along with sturdy material like marbles or granite for the worktops.
The price can range from Rs 50,000 to 20 lakh depending on the style, material used,
accessories, appliances and gadgets that the customer goes for and the space he has. One can
get a basic modular kitchen installed at a cost of Rs 1 lakh to 1.5 lakh. Almost 70 % the
players in the industry are making modular kitchens in this price range.
According to a research by Netscribes (India) Pvt. Ltd, the market size of the modular kitchen
industry in the country in 2008 was Rs 33 billion and has grown at the rate of 50% to hit Rs
50 billion in 2009. The organized market comprises of 70% of the market.
"The kitchen appliances market that was worth Rs 10 crore a decade back has grown to Rs
300 crore at present," said a spokesperson of the Gurgaon-based Kaff Appliances (India), the
pioneer group to introduce modern appliances to Indian homes. The company supplies a
varied range of accessories like chimneys and burners.
When Kaff was started in 1998, there wasn't much demand as the concept was new to the
country, he said. However, in the past 10 years our demand in Gurgaon for kitchen
accessories and appliances has increased exponentially. "Our business has been witnessing
30-40% increase every year. Modular kitchen is no longer a luxury but a household necessity.
Kaff provides a full range of appliances to suffice the need of all income groups," he added.
Players in city say they have been getting huge demand for the business from other cities like
Bangalore and Mumbai as well but they often have to pass on the business to other as they

have enough in hand from Gurgaon itself. "Around 1.25 lakh apartments are set to come up in
Manesar and Sohna road by 2014, and if I assume that even 20% of that number goes for
modular kitchens, I see a demand of 22,000 to 24,000 kitchens coming in the next two years,"
said Mr. Sharma of Lispo.
The company has seen it business grow at the rate of 15 to 20 % in the past five years by
catering to a high-profile clientele comprising Rahejas, DLF and Ansals among others. "It is
the builders who have generated the pace for the growth of this industry in the city in the past
five years.
First they tried and tested the concept and today they offer modular kitchen as the basic
segment in their projects as they get more leverage and premium for their property. If they
have 100 apartments and we cater to the kitchen demand for them, then it leads to our brand
promotion itself," Mr. Sharma said.
The Gurgaon modular kitchen industry seems to be the perfect example of co-existence. The
hardcore modular kitchen industry in the city is unorganized but organized players say that it
does not affect them. "Every one is getting their share of the pie.
There must be a demand of 100 modular kitchens per month in Gurgaon and since I have a
capacity to deliver only 20, the business of rest 80 won't affect me. I am happy to get my 100
% business," said Mr. Sharma. He added that the unorganized sector will ultimately vanish
out of the market as the customer is becoming increasingly aware of the product. After all
what everyone wants a good quality product.
The Modular Kitchen Market is expected to witness strong growth. Many international
players are entering the Indian market and large numbers of joint ventures are taking place.
The report provides a brief overview of the market including the estimated market size,
growth rate. An analysis of drivers reveals that growth in organized retail, rise in housing
projects, changing demographics structure and need for customized kitchen is driving growth
in this sector. The key challenges identified are high prices of branded modular kitchen and
low replacement demand.
The report discusses the current market trends including entry of international
players into the market, players forming joint ventures and collaborations and
increase in private equity investments and acquisitions. The report profiles the
major domestic and international players and includes their business highlights,
financials and expansion plans.

The Current Trends

With the demand of the clients, Modular kitchens have become a must in many houses where
the homeowners can plan every fitting, every material and every layout. More sophisticated,
streamlined, sleek, - modular kitchens are aesthetically very pleasing. A variety of Modular
kitchens are available in the market today and the variety extends to all their features too.
They come in various shapes - U-shaped (very efficient and great space saving), L-shaped
(good for small kitchens), straight (the basic form), island kitchens (for bigger sized kitchens)
and parallel kitchens (eliminating the need to walk between two work areas). Circular work
islands and central islands customized into many layers are gaining tremendous popularity.
Options like freestanding island kitchens also integrate extra storage space.

The trend of open plan kitchens without any demarcation between the living and kitchen
areas also exists. Keeping in mind the current trends, CC India and Veneta Cucine have
focussed on developing the kitchen as a living space, and not just a place to cook. Adds Mr
Karumbiah, "We have made the kitchen a place to spend quality time with one's family by
including the living room, party area, library and TV area. Most of the kitchens are loaded
with all appliances and accessories (coffee machine, ice maker), to reduce the actual cooking
time and to make it less tedious. Due to the surge in the number of people purchasing
Modular Kitchens in India and China over the last few years, the needs of India and China are
a focus of CC INDIA and Veneta Cucine - we focus on local cooking needs." The other
concepts that are being incorporated here include the juxtaposition of extremely minimalistic
furniture pieces with very classic pieces; the introduction of technology and automation for
the worktop, chimney, and other such key areas; Eco friendliness (anti-bacterial kitchens) as a
key focus area of the Modular Kitchen.
Modular kitchens come with specific accessories - chimneys, dishwashers, ovens, pull out
drawers, trolleys, wine cutleries, cooking range, adjustable shelves and its surprising to find
the diversity in these accessories themselves.

In an age of socialization, kitchens are also seen as places of interaction where the hosts and
guests can chit chat - a kitchen bar is a space for guests to sit while the hosts complete their
chores. In large kitchens, more than one workstations make a lot of sense in saving time.
Movable/foldable countertops while providing an extra platform can also be seamlessly
melted into the kitchen decor to free up space. Round countertops are also preferred at many
places in larger spaces to curb much movement. Materials like wood, granite, quartz emanate
a great Modular look.
Designers go to a great deal, trying to get the natural light into the kitchen while for lighting
after dusk, task, direct and inset lighting are preferred. With the green movement progressing
in all quarters of design, LED lights are also considered a hit. Designers are not shying away
today to lend this space a glamour quotient by incorporating an elegant chandelier too.

The sneaky drawers have been replaced by drawers with soft closing technology that can
glide in and out with just a small tap. The synchronization of the cabinetry with the entire
kitchen has become so important that appliances (like the microwave and the oven) are
concealed by making their exteriors match with the cabinetry styling. The cabinetry can be
wall mounted, base cabinets, suspended shelving units from the ceiling and furniture styled
cabinets; while the storage has increased by manifolds, the way the storage is extracted is
much more intelligent than ever before. In the conventional wasted corners of kitchens,
spaces are creatively carved out for storing appliances. Compact larder units are a great way
of storing dry grocery and fresh drink bottles. One finds cups hanging under the k itchen
cabinets on mid way systems. These kind of space use makes the kitchen more efficient and
de clutters it, making cooking a more enjoyable task. Wall cabinets and doors don't
necessarily need a handle today to be operated. Consider running mirrored plinths along the
bottom of the base cabinets - the floor area will visually increase!
Technology has definitely made cooking and its allied activities faster. Refrigerators with
televisions integrated into their doors, motorized lids transforming a kitchen into a living

space by covering the hob and sink areas, four door wall cabinets converting into a fully
functional kitchen with a press of a button, are the many innovations in kitchen equipment
and appliances that one finds today. Chimneys with feather touch buttons and built in LED
lights, oil filters, luxurious chimneys in crystals with carbon pads (eliminating the need of
any ducting area) are also there in the market. There are some chimneys which are noiseless
while others can be remote operated, some have the sensor technology and can switch on and
off automatically as needed.
There are pyrolytic ovens which are self-cleansing - one can just increase the oven
temperature and the food and grease are mostly burned off. There is also the concept of an
integrated fridge which is fitted with a wooden panel over the door that is created to match
the cabinetry. They are ventilated from the front (instead of the back as in standard
refrigerators) and hence can be placed anywhere without the consideration for air space
around them. Available in different sizes, these are energy efficient and have alarms which go
on when the refrigerator door is left open.

Sinks today also see a lot of variations - in materials, shapes, and colours.
The availability of a plethora of materials has also stepped in to offer new finishes to the
kitchen design - glass, stainless steel, wood, laminates, lacquer, stones like granite, slate and
marble, high glass veneers and eco- friendly options. Glass is used a great deal nowadays to
make the kitchen look elegant. Frosted or stained glass doors for cabinets help in making the
space visually open. Stainless steel appliances are still considered very trendy. Contemporary
ideas for decorating kitchen appliances, cabinets and walls have also come in. Vinyl clings
are inexpensive, temporary and can be used on stainless steel. Wallpapers (washable!) and

patterns are now a regular with kitchen decor. So are backsplashes in glass, stainless steel and
even brick. Laminates are also available where one can write and erase and even pin sheets.
The splash of colours has also made its way into the kitchen today. From neutrals, to blur and
lighter green shades, to warmer colours to bold colours, all are being implemented. Distressed
finishes have been a favourite. Sometimes the monotony of the kitchen is broken by giving a
strikingly different colour to the central island. While neutral shades were much in demand
earlier, today one finds the presence of bold contrasting colours in most kitchens to make a
statement.
Faucets today are high tech and stylish. Pull-out faucets have made life a tad easier. Chrome
finished faucets are elegant.
The colour and material trend being followed at CC India and Veneta Cucine is juxtaposition
of neutral colours and neons; introduction of pastel colours into the kitchen and the use of
BBS Bacteria Block Silver Guard (an anti bacterial material that disinfects all worktops and
spaces in the kitchen thereby rendering a safer environment).
Internationally, product designers are definitely coming up with more out-of-box solutions in
kitchens. While there has been an innovation of a Modular space saving kitchen cabinet
system for a one bedroom apartment, a studio or a loft (which has sliding modules when one
is not cooking or working can slide together and create different kind of sideboards), there is
also a portable kitchen unit which comes with a cooktop, a sink, garbage disposal system and
work space for food preparation, and can be assembled or disassembled in a few minutes.
There is also a novel concept of enclosed kitchen sinks with movable cutting boards and
retractable faucets when counter space is restricted. Multipurpose kitchenette including a
cooking hub, dish washer, sink, fridge and washing machine assimilated in one structure and
with a sensor technology is also quite an innovation. There are also internet refrigerators
which download recipes on their LCD screens and keep the consumer informed about the
expiry of the food inside.

Cucine Lube has various products in Modular kitchens. Maura (available in veneer, lacquered
paint, and lacquered glass finishes) contains deep fryer and barbeque options with a quartz
worktop. There is also a Le-Mans tray as an option for corner and it houses an island chimney
and a built in oven. Adele revels in the natural beauty of wood and has a wide range of
lacquered colours that evoke the feel of a pure material. Lucy (available in versatile layouts)
is specifically designed for contemporary environments where space is shared and the kitchen
becomes its very own furnishing system. It is proposed with an aluminium frame in a
polished champagne finish and a horizontally-grooved glass door in catalogue-featured
colours. Glass features in the countertop and sink. Brava is based on a hand-less concept, has
a smooth, neat look and is available in various finishes such as veneer, high gloss lacquered,
coloured glass, gold and silver foils on acrylic base. Cucine Lube recently launched two of
their innovative design collections - Nilde Gres and Creativa. While Nilde Gres uses
porcelain and is designed to withstand heat, shock and chemical resistance; Creativa through
its geometric feels personalizes your living space exclusively by creating more than eight
layouts in a single design.

Findings
Potential of Modular Kitchen in India
Furniture Industry
The furniture industry is a Rs. 71,000 Cr. industry today - the modular kitchen segment being
the fastest growing. As per industry statistics, the kitchen segment stands at around Rs 20,000
Cr., with the modular kitchen industry at Rs. 2500 Cr. and growing. With the increasing
emergence of nuclear families, rising disposable income and better affordability, this industry
is expected to grow at the rate of 40% per annum.

The Indian Furniture market is worth about $8bn.

Constitutes 0.5% of the total GDP.

Employs 3,00,000 people.

Highly unorganized- only about 15% in organized sector.

Organized sector growing at 30% CAGR.

Wooden home furniture is the biggest segment.

Key states for wood furniture: Gujarat, Rajasthan, UP, Punjab, Kerala, AP,
West Bengal.

Modular Kitchen Industry

Modular Kitchens are based on functional practicality. The onset of modular kitchens in the
Indian furniture market have spelt a consciousness that even kitchens can have a style
statement and at the same time be comfortable, efficient and elegant. Convenience, efficient
use of space, and lifestyle changes have increased the demand for modular kitchens today.
Opportunities exist, not only with domestic players but with international retailers as well.

Stands at around Rs. 2,500 Cr.

Indian readymade kitchens currently sold at the rate of 10,000 units per
month in the country.

Expected to grow 10 times in the next three to four years.

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.

It is largely unorganized with the presence of local and small players.

Unorganized market includes carpenters making self-designed kitchens
based upon the requirements of the households.

Modular kitchens are customized based on the requirements of the

consumer. Based on the need of the consumer, it can be set up with
various accessories like chimney, burner etc.

Kitchens account for 40% of the furniture and fittings industry. Products in
this market are largely focused towards establishments in urban India.

FUTURE OF MODULAR KITCHEN 2014-2016

The Modular Switch market in India to reach US$604.53 million by 2016. One of the key
factors contributing to this market growth is the rapid growth of the Construction industry in
India. The Modular Switch market in India has also been witnessing the development of
advanced modular switches. However, the high cost of modular switches could pose a
challenge to the growth of this market.
The key vendors dominating this market space are Anchor Electricals Pvt. Ltd., Havells India
Ltd., Honeywell Electrical Devices and Systems India Ltd., and Legrand India Pvt. Ltd.
The other vendors mentioned in this report are GE Co., Schneider Electric SA, ABB Ltd., and
Philips Electronics India Ltd.
Investment Opportunity
Mr. KITCHENS is engaged in the designing, supply and installation of modular kitchens,
wardrobes, crockery units, TV units, Show case and kitchen appliances & accessories.
KITCHENS is planning to manufacture almost 75% of the components that go into making a
modular kitchen with required investment.
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 Dcor 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.
Modular Kitchens are based on functional practicality and the onset of Modular Kitchen in
the furniture market of India have spelt a consciousness that even kitchens can have a style
statement and at the same time be comfortable and elegant.
According to Industry experts, the modular kitchens segment stands at around `1500Cr, with
Indian readymade kitchens currently sold at the rate of 10,000 units per month in the country.
The increasing number of nuclear families, rising disposable incomes, affordability, and easy
budget, will drive awareness levels and demand for modular kitchen, which is already
growing at the rate of 40% per annum.
Modular kitchen in India is expected to grow 10 times in the next three to four years.
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.
The company is planning to purchase the wood working machineries with the required
investment to produce the kitchen cabinets in India to reduce the operational cost.

Competitive Advantage
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 fiber 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.5, 00,000 to
Rs.8, 00,000.
Rationale for the deal
Mr. KITCHENS incorporates the latest trends in modular kitchens keeping the Indian
cooking habits in mind. Mr. Kitchens modular kitchen systems specially developed for the
Indian cooking environment.
Mr. KITCHENS believes in providing the customers value for their money and have
positioned the kitchens at an affordable price with a focus on the middle income segment. It
believes that there is an untapped market in the middle income segment which is both brands
conscious and inspirational in nature. The company is targeting one of the fastest growing
segments, having an increasing level of disposable income.
Mr. KITCHENS procures its raw material directly from reputed manufacturers, importers and
suppliers which helps the company to establish an efficient supply chain at competitive prices
and ensures timely delivery. The management of the company places significant emphasis on
the sourcing and logistics of raw material. The company is able to source key raw materials
close to the factories resulting in reduction of transportation costs.
Use of financing
The company is seeking for an investment of Rs.67,50,000 ( USD 150,000 ) ( Sixty seven
Lakhs fifty thousand only) to achieve its goal of budget class modular kitchen supplier in the
market place.
With this modest initial investment, the company projects significant sales and profit levels
by the completion of its six month of operation.
This business plan was developed to introduce the company to prospective investors in order
to obtain financing to facilitate the growth of this company. The starts up expenses are
already done by the promoters of the company. The Purpose of this proposal is to secure
Rs.67,50,000 ( Rupees Sixty seven lakhs fifty thousand only) as an investment for the
purchase of wood working machineries, show room expenses and advertisement of the
product. The funding will be utilized as follows:
Factory Set up ( 10000 Sq ft ) - 10,00,000
Wood working Machineries
Automatic Edge banding machine - 11,00,242
Panel Saw Machine - 3,35,863
Post forming machine - 4,05,352
Hydraulic Hot Press machine - 12,33,750
Dust collector - 43,575
Showroom Set up ( 2500 sq ft ) - 5,00,000
Product display - 10,00,000
Advertisement - 5,00,000
Working Capital Reserve - 6,31,218 Total - 67,50,000 ( USD 150,000 )

Key interesting findings of the study: Overall Country

85%+ of Interest and INVESTMENTS in modern kitchens comes from Top 10 cities:
Mumbai, Delhi, Bangalore, Chennai, Hyderabad, Pune, Kolkata, Ahmedabad, Chandigarh,
Jaipur.
Rs. 2.5 lakhs is the most common price point for kitchen INVESTMENTS, with some
users willing to spend as much as Rs. 15 lakhs.
L Shaped, Parallel and U Shaped are the most popularly searched types of Modular
Kitchens.
L Shaped Kitchens have a large island with a sink on one wall, range on the other, and a
preparation sink in the island, thereby making a huge counter space possible. This type is
ideal when one is faced with a space crunch. Parallel Kitchens are designed to ensure
maximum utilization of available space without compromising on the convenience of
cooking. U Shaped Kitchens are the open kitchens that provide more space to the kitchen
that RUNS down to the dining area.
Indian style modular kitchens are more popular and receive four times the number of visits
when compared to the Italian style modular kitchens.
Indian style kitchens are mostly L Shaped which enhances the floor space. With
drawers and cabinets embedded in this kitchen design, it makes the counter workable and
free of space crunch. Whereas, Italian style kitchens have low-cost cabinets and enough
center space for main chores in the kitchen and a small kiosk as WELL

Over 37% of the searches done are for blue modular kitchens. Green is the second
most popular colour followed by red.

Cabinets, baskets and built-in appliances are the most searched for kitchen accessories
followed by cutlery trays and chimney & hoods.

Among the 40 brands displayed on kitchen.sulekha.com, Sleek, IFB, Godrej Interio

and Veneta Cucine, are the most popularly searched brands in the modular
kitchen MARKET.
'Speaking on the occasion, Satya Prabhakar, CEO, Sulekha.com, said, Over the last one
year, Sulekhas user analysis has indicated that Kitchens have become an area of increasing
interest and INVESTMENTS in urban households in the top 8 cities, leading us to
launch kitchen.sulekha.com, a dedicated online marketplace for Kitchen needs. The site has
received tremendous response and is growing 100% every quarter. Our users have spent
nearly Rs. 50 crores in kitchen improvements last year. We look forward to enriching this
marketplace with more OFFERINGS and growing our network of buyers and sellers
manifold.

COMPETITIVE ANALYSIS
Top 5 brands in Modular Kitchens
While interiors in any house can be done in numerous styles, what with the surfeit of ideas in
the market today, when it comes to kitchens there is only one idea for the new look
MODULAR KITCHENS!
What started as a concept yesterday is today an attractive option; Modular Kitchens are
gaining ground with their housewife friendly features; ease in installation, adjustability, great
space-saving capacity and quick and easy maintenance.
But with so many brands cluttering the market, finalizing your kind of brand might be
difficult. So we thought well help you out with the top 5 brands of Modular Kitchens in the
country today.
1. GODREJ:
Godrej Interio, is the Modular Kitchen brand from the house of Godrej, with its long standing
brand image of making tough, long lasting furniture. Their kitchen designs firmly resemble
the needs of the Indian households where the height of the work platform and placement of
the units in the modular kitchens are made keeping in mind the average height of an Indian
woman and her cooking habits. Their cabinets are also specifically designed to provide
storage for the Indian kind of kitchenware. According to the utility and frequent usage, the
placement of the units is planned.
Features:
Godrej Interio Kitchens are made of galvanized steel, making them far better in
handling spillage from oil and water stains that are regular damages in any cooking
spree.
The entire kitchen is made in steel or metal with additional options of laminated wood
or steel shutters again making it easy to clean.

Shutters are also available in membrane-pressed wooden and post-formed steel look
and 3 different types such as Steel, MDF and Marine-ply, all of which are water
resistant. The colours of the shutter are carefully chosen to ensure a bright yet soft
look that visually gives depth, vastness and as the company claims, to create a happy
mood in the kitchen.
The shades and the pattern of the wooden shutters have been crafted to give it
contemporary styling. Additionally cornice and pelmets in some of the styles, add
beauty and a complete look to the kitchen.

A poly vinyl chloride skirting is provided to avoid dust and water from entering below
the units thus helping mopping of the floor. Also the skirting is removable making
even the cleaning of the floor possible.
Godrej Interio Kitchens assert that their unit based format can be conveniently
modified to suit individual needs and thus gives a high level of flexibility and optimal
space utilization.
The steel kitchens have been a winner for Godrej with most consumers expressing
satisfaction with the fact that with steel one is not worried about termite infestation or
damage due to water. If you agree with this, you could go for this brand. Price starts from Rs
1.5 lakhs .
For more information visit http://www.godrejinterio.com/

2. SLEEK:
Sleek Modular kitchens have carved a name for themselves despite the heavy competition in
the modular kitchen market. Sleek, as the company claims, aims at achieving progress
through ``design, innovation and improvement. They are one of the largest manufacturers
and marketers of kitchen accessories and products in India.
Features:
Sleek pride themselves in a USP of ``optimum utilization of storage space.
They have an affiliation with an Italian brand thereby giving their kitchens a unique
international design.
A wide range of shutter and cabinet design from international houses provide a truly
sleek and stylish kitchen.
Use of ergonomics- a scientific method to design interiors, is what the company
boasts of.
They give you a complete finish with precise looks and quality.
Sleek modular kitchens are sturdy, elegant and have perfect finishes.
While Sleek has its advantages, there have been issues with its installation with quite a few
consumers criticizing its franchisee dealers on websites like Mouthshut.com. So if you are
going for Sleek be sure to go by a reputed dealer or a trusted recommendation.
Price range: Starts Rs.80,000/For more information visit http://www.sleekworld.com/
3. KUTCHINA:
The pioneers in AUTO CLEAN TECHNOLOGY and the brand that believes that the ``Indian
homemaker deserve the very best in technology and aesthetics, Kutchina is best known for
its chimneys. But they do have modular kitchens as well.
Features:
Cleaning the chimney has always been the most cumbersome cleaning process in any
kitchen and Kutchinas USP is its ability to give you chimneys that spare you this
trouble. Just pour soap water, collect dirty water and presto, your chimney is clean!
This is one of the finest features of Kutchina kitchens.

Kutchina kitchens bring the most up-to-date, crest-of-the-line German technology.

They have counter tops made of stone that are durable, look good and never lose
luster.
They use marine ply shutters with a wide range of textures, patterns and colours
which are water resistant unlike commercial ply shutters which can puff up due to
water seepage.
Price range: starts at Rs 50,000/For more information visit http://www.kutchina.com/

4. GILMA:
Gilma believes in elevating the standards of modular kitchens in India and make it world
class. They promise innovative features, state of art quality and futuristic designs with their
amazing array of products. With Gilmas products you are going for tomorrows lifestyle at
todays price is their USP.
Features:
Gilma uses Italian hardware.
Water proof plywood below the wash area are used to make it durable and long
lasting.
PVC skirting with adjustable legs which makes it easier to clean the hard-to -reach
places.
Shutters with MDF membrane shutters and melamine faced chip board for cabinets
matching the shutter colour.
The colors are chosen and designed for a pleasant look and aesthetic design to create
volume and density in turn.
Even in Gilma, installation issues have cropped up in websites like Mouthshut.com and one
needs to be careful while going for the franchisee dealer. Price range: Starts from Rs
70,000/For more information visit http://www.gilma.co.in/
5. VENETA CUCINE:
The famous Italian house brand, Veneta Cucine , is creating a buzz with its high tech and
stylistic designs. Its ISO 9001 certification issued by the prestigious TUV Institute in
Germany is a qualification which proves that the company uses highly advanced
organizational procedures and production methods.
And as a tribute to sustainability and Green thinking environment, the company utilizes
100% wood composites to build the elements for its kitchens, employs materials that do not
damage the environment, and has implemented production methods which include
continuous-cycle water-based enameling, a process that drastically reduces the emission of
harmful substances. Veneta Cucine despites its high end pricing, offers practical advantages
to the customer.
Features:
Veneta Cucines wide range of internal accessories and devices are all designed to be
sturdy and practical making it even more reliable and durable.

They use BBS-Bacteria Blocker Silverguard an exclusive trademark created for

antibacterial treatment using silver ions. The surface of the laminates are given this
treatment to reduce bacteria growth by 99.9% and the biggest advantage of this
system is that the antibacterial power remains unchanged over time since they are
embedded into the particles and does not evaporate.
Its hinges and guides have damping devices for a soft closure.
Wall units with automatic closure and illuminated rear for shelves.
Drawers with 30 kg load-bearing capacity and tested for 200,000 closure cycles.
Practical, ergonomic design thanks to handy interior accessories.
Price range: Can start from Rs 4,00,000/- and go up depending on the material you choose.
For more information visit www.venetacucine.com

6. MONARK INDIA:
Monark is a one stop solution for all interior product and service requirements catering to the
residential
and
commercial
Projects
and
retail
channels.
Monark OFFERS its products and services to customers globally through a worldwide sales
network and branch offices located at Delhi (India), Barcelona & Jaen (Spain), Shanghai &
Shenzhen (China). Today it has manufacturing and administrative operations both in Europe
and Asia. Our overseas brands leadership is based on innovation, latest technology, quality
and warranty on its products.
Features:

Works only for the commercial sector

Follows completely the ergonomics theory
Major Products are: Kitchen Space (Modular Kitchen, Kitchen Appliances and
Equipments, Kitchen Shutter & Component, Sink & Sink Faucets and Counter
Tops), Bathroom Space (Faucets and Shower System, Shower Enclosures,
Vanities and Bathroom Cabinets and Bathroom Hardware Accessories), Living
space (Wardrobes, Wooden Flooring, Wooden Doors, UPVC Doors & Windows,
Aluminum Doors and Windows and Tiles) AND Others ( Door skins, Office
Furniture, Wooden Component & Carcasses, Hardware, Engineers Stones &
Accessories).
Major Brand Partners are PALADAR, JAGER, IGUAZU, SOLERA,
PORTILLO, OFITRES, TEKA, COSENTINO, PAMESA and ALVIC.
Certification from ALVIC, TEKA, COSENTINO and PAMESA.
Price Range- Can Start from 4,00,000/- and can go up depending upon the project size
and materials used.
For more Information visit www.monark-india.com

STRENGHT

Deals only in Commercial

sector rather residential
which in turns helps to
generate good revenue for
the company.

Highly unorganized.

Wood is imported from china

instead of buying it from Indian
market resulting huge costs

Has local as well global

presence.

THREAT

WEAKNESS

Entrance
of
both
International and Domestic
players in the market

OPPORTUNITY

Increasing housing projects

Growth in Organized Retail

Changing demographic structure

and need for customized kitchen.

SWOT ANALYSIS OF MONARK INDIA LIMITED

CONCLUSION
Observing the stable growth, companies are planning to role out more outlets in near future
and this segment would see lots of competition in terms of variety and price, thus giving
wider range to consumers to choose from. With people becoming more look and brand
conscious the companies in this segment have to introduce more world-class kitchen
appliances to please the consumers whose number is ever increasing and who are ready to
spend extra if provided with the right quality of products.
They look for the solution where everything comes intact and in three hours their kitchen is
ready. So modular kitchen retail will definitely increase with the increase in retail segment.
Also highlighting the future of the industry, Consumers have seen the practical benefits of
modular kitchen in terms of convenience, planning, space saving etc and the business has
grown. Therefore the segment is going to be more beneficial not just for the franchisors but
even for the franchisees.

Indian kitchens have undergone a total 180 degree shift in every aspect, be it the basic look of
the kitchen to the cooking habits and the kind of utensils used. With markets being mature
and changing lifestyles, modular kitchens have become a way of life. Considering the current
scenario and the trend, kitchen segment is expected to come up with products, appliances,
accessories and services to feed the current trends. Also, the home makers can choose the
kitchen, which fits their home style, work style and lifestyle and this will definitely inspire
them to spend more happy time in their kitchens.

Bibliography

Referred Book of Marketing Management By- Kotler & Keller

http://articles.economictimes.indiatimes.com/2012-02-25/news/31099855_1_kitchenappliances-modular-kitchen-cabinets

https://www.merar.com/meeting-place/india/construction-engineeringarchitecture/seeking-investors-for-modular-kitchen-business-in-india/

http://www.free-press-release.com/news-indian-modular-kitchen-market-witnessingenormous-growth-1391682142.html

http://www.franchiseindia.com/magazine/2008/april/Advent-of-modular-kitchens_382-2/

http://www.thehindubusinessline.com/industry-and-economy/real-estate/modularkitchens-make-a-statement/article5379653.ece

http://www.hindu.com/pp/2005/09/11/stories/2005091100140300.htm