About the Italian Touch

Indian Asian Granito and Italian Paneria Group joined hands to launch a brand named ‘Bellissimo’ which will cater Indian Luxury market. In an interaction with Ankur Gaurav, Mukesh Patel, MD, Asian Granito India Ltd, spoke about how his infrastructure along with Italian technology will capture Rs 200 crore Luxury tile market

Ankur Gaurav: What is the reason behind making a different brand with the name ‘Bellissimo’.

Mukesh Patel: Reason behind coming up with a different brand is that we want to cater the luxury market in India. For that we needed a technology which was available in Italy. They are twenty five years ahead of us and Italians have the expertise. So to cater a clientele which is different from the normal client we have come up with a different brand with this name.

AG: Bellisimo is a joint venture of Asian Granito and Panaria under a 50-50 partnership. How is this 50-50 defined?

MP: This joint venture is not only limited to technology or commercial tie ups. But we will be taking decisions together. Baard of four members will be there with two from each of the parent organizations. We will contribute with infrastructure and network of suppliers and distribution channel. They have designs, models and technology and strategy. In short both have certain strength and if amalgamated it would result in the formation of excellence. The first range has been 100 per cent finalised in Italy.

AG: What is the market size as of now?

MP: As of now the market size in India is Rs 12,000 Crore which also includes the unorganized sector which accounts for Rs 5,500 Crore. Out of Rs 6,500 Crore which is organized, luxury sector shares Rs 200 Crore. The Luxury tiles which are imported from Italy costs over Rs 100 per square feet.

AG: How will you distribute the Bellissimo tiles in India?

MP: Asian has over 400 dealer network across India but we will not focus on that, because most of the dealers cater to the medium level market. We will have a fresh dealer network and a few of them who deals in high end luxury tiles.   

AG: Which all cities will you be focusing as your target area for Bellissimo?

MP: Our prime focus will be on Delhi and Bombay. We have noticed a lot of luxury suites and buildings coming up in Delhi and Bombay. And this target group is one which is not bothered by the price and wants an Italian mansion type finish.

AG: Why Panaria, and how is Panaria as a company doing in Italy?

Panaria if you check is in third place in Italy but if you consider the luxury segment Panaria stands in the first place in Italy. They bring in a lot of expertise along with them and so I think we have got a good partner to capture this segment in India. They are already exporting in 107 countries. Bellissimo will cater to the Indian market but will also try to capture the export market using their experience.

AG: If we talk about the turnover of Asian Granito, how has been its performance in the last fiscal year?

MP: Our turnover in the last fiscal year was over Rs 700 Crore and we will easily cross 1,000 Crore this year. And if I tell you about Bellissimo and its target in the coming years, we are hopeful of capturing 35-40 per cent of the Rs 200 Crore luxury tiles market.

AG: What is the amount of investment that you are planning to make into this new venture?

MP: Both the parties have planned to invest Rs 50 Crore each which makes the investment of Rs 100 Crore in the coming three to five years. Initially Bellissimo will operate within the infrastructure and production lines of Asian Granito but very soon it will have a separate line. We will invest in making warehouses in different zones across India and in the production line for Bellissimo. At present we will enhance the capacity of the warehouse in Ambala, Delhi-NCR and Gujarat.