On the spree of expanding its number of experience centres, Somany Ceramics Ltd. recently launched its 2500 sqft experience centre in Mumbai while eyeing to have another 75 experience centres across tier II, III and IV cities through franchising this year. Thus, projecting the bright future of the ceramic industry ahead backed by the encouraging government initiatives and the ongoing rapid urbanisation across the country, Abhishek Somany, MD, Somany Ceramics Ltd. spoke to Indianretailer.com.
Somany Ceramics is expanding the number of experience centres, so what are your future plans?
We have 200 such experience centres which are franchisees and we are thinking of launching another 75 centres this year. These centres will be spread across tier II, III and IV cities in the country. These are the experience centres purely where we don’t sell from.
Will these be company owned or franchisee run centres?
All these 75 will be the franchisee run centres. There will be fewer company owned centres going forward because we don’t sell from these experience centres.
What would be the investment for each of the experience centre?
For an experience centre the investment starts from Rs 18 lakh onwards. We spend about three percent of our revenue on advertising and branding.
Are each of your experience centres built in an area of 2500 sqft?
They could be larger. In Kerala, Delhi, Chennai and Mumbai we have got 7000-8000 sqft of area of experience centres.
What would be the ROI from the investment on experience centres?
The ROI is huge. We are banking on the old saying ‘Jo dikhta hai, woh bikta hai’.
On an average how many experience centres do you have in a city?
Generally we have one in every metro city.
What is your current revenue and what are the future expectations?
Our revenue is about Rs 1800 cr. We are looking at 8-10 percent growth this year and hopefully even better next year.
How is the market for ceramics in India?
For the next 15 years the market for ceramics in India will be on the uptick with encouraging government initiatives and rapid urbanisation taking place. As a part of the urbanisation, there will be a growth in the number of buildings constructed, whether it’s a low income housing mode or upper end houses. So, in this urbanisation story in India the industry will keep growing at least for the next 15-20 years.
Also, the spending power of middle class is growing with the growing consuming power. We are also offering fashion oriented products that allow our customers to change and upgrade their tiles, which they already have.
According to you what is the market size of ceramics in India?
Presently, the Indian market is at Rs 24K cr and it is growing by around 5-6 percent. And in 2018-20 it will be multiplied by 5-6 percent at least.