The product definitely has high price value in totality in comparison to local players: Capt Mukesh Kumar

The demand for modular kitchens is growing as the average spending capacity of Indian consumers grows. TechNavio’s report had predicted that the Indian modular kitchen market will grow at a CAGR of 42.93 per cent in the span of 2013-18. In fact, with modular kitchens, the market is also seeing demand for furnishing, which is in sync with the style of kitchen.|
Sensing this opportunity, Kanu Kitchen has brought German brands Hulsta, Hacker and Rolf Benz to India and is even expanding them. The mastermind behind this vision is Captain Mukesh Kumar, who brought the German legacy to India. Under his vast experiential guidance, these three brands are all set to draw the targeted consumer at a rapid speed in India. Retailer Media interacted with Captain Mukesh Kumar, Managing Director & Chairman of Kanu Kitchen Group, to understand his philosophy behind the set up.

What made you bring Hacker, Rolf BENZ and Hulsta to India?
We have been existing in India for the past 12 years with Hacker and 6 years with Hulsta & Rolf Benz and are steadily growing here. We continue to expand in Tier II cities step by step.

Is India ready for products like these? What is the pricing strategy that you have made for India?
The Indian market is already excited for such products and we have proactively installed more than 10,000 kitchens in India apart from few projects. We work on very conservative margins, so that we can do numbers of kitchens in view of the Hacker philosophy that more and more Indian families can enjoy the Hacker kitchen.
It is true that our kitchen manufactured in Germany attracts value addition close to 42 per cent comprising of 30 per cent import duty and 12 per cent sea freight cost, which definitely adds to the cost as against local players/manufacturers.  There can definitely be no comparison between the local players vis-a-vis imported kitchens, which more or less come built carcass wise. Besides, this increased inherent cost factors for imported kitchens, the other major factor is the comparison on the quality front, which a consumer needs to check for understanding to differentiate product values/strengths before deciding to opt for what they feel is right to accept.
As Hacker’s foremost objective is to supply one standardised product line under the strictest of quality controls coupled with high precision and continuous innovation, the product definitely has a high price value in totality in comparison to local players. But, going with the Hacker philosophy of doing numbers in kitchens, we work on a very conservative margin to make the product very affordable in the Indian market.

Please tell us about the USPs of your three products? Do you think they can bring a change in the industry?
Hacker has very strong international branding and one of its kind to offer their product for every segment of people ranging from low end to mid range and top end modular kitchens. Hacker has very high quality standards and only uses the best grade of raw material needed for modular kitchen production. Their strength is in their continuous research and development to keep pace with the latest technology. From Hacker, every single kitchen is customised to fit any space within their standard cabinetry system. Hacker production line has one of the most advanced technical machinery created by R and D to provide high quality with precision in their operating equipment so that all the kitchens are trouble-free in the long run. Hacker has the RAL quality seal of approval for tested safety and quality management of its systems, which is certified in accordance with DIN ISO-9001 certification. Every single part/material used in Hacker Production carries DIN certification (DIN in German standards is equivalent to ISI standards in India, but more stringent). Hacker provides delivery of certified tropicalised kitchens.
Hacker currently produces approx, 8000 carcasses every day in an 8-hour working shift, five days a week which roughly concludes to producing 770 kitchens per day. The level of precision maintained is the sole factor of Hacker achieving the annual turn over 466 million Euros in 2015. The complete production is optimised with automated robotised computer machines that the total manual labour involved in production is only 8 per cent while 92 per cent of the production is automated

How have you detailed your customers? How are you addressing their needs?
Our first and foremost target is to educate our clients on the very essential features one needs to look at so to understand its value in terms of functionality, utility and durability before considering any options in the selection of a good working kitchen. Next on the list comes the aesthetics of any kitchen, which purely depends on an individual’s choice in terms of colour preferences from different surface and finishes available on offer.

How has been the response for these brands so far? Did you ever feel the need for launching an online store?
We opened our first Hacker showroom in 2004 and with the passage of time we have expanded the business to 11 cities i.e. New Delhi , Ludhiana , Jaipur , Ahmedabad, Mumbai , Hyderabad, Bengaluru, Kochi, Coimbatore, Chennai, Indore and plan to open more showrooms in Pune, Kolkata and Vishakhapatnam. We have no immediate plans to launch an online store.

Which are your biggest overseas markets? Is there any difference in products made for Indian consumers and those made for the overseas markets?
Hacker has a global presence in 60 countries. Apart from EU, it covers the Middle East, Asia & South East Asia, Far East & Pacific.
We as Kanu Kitchen are the sole selling dealer for India only.

What have been the major challenges in scaling up so far?
As far as furniture is concerned, we are slow in the market as more people expect the furniture off the rack, on need basis, whereas we have nothing to offer off the rack. Since Hulsta and Rolf Benz provide customised solution product to suit the space and taste of an individual, it needs 6 months advance planning to have perfect furniture in any house. The awareness of advance planning is growing slowly, but catching up well and expecting better growth in the coming years with the help of architects and interior designers who now plan well in advance for the furniture segment.

Talk to us about the recent trends in the kitchen market?
The shape of the kitchen can be designed to fit into the required space. However, the kitchen designs can be created in L-shaped, U-shaped or parallel run shape or with Island option. The current concept, which is more popular is, where the kitchen opens into the dining/living area and the family can be involved in cooking jointly, but can also enjoy eating together simultaneously.