Whirlpool of success

Having forayed into India recently in association with Cera Sanitaryware Ltd, Novellini Group is contemplating to set up a manufacturing plant and infuse a fresh fund of two million Euros in 2-3 years. Giovanni Orlandi, Export Manager, Novellini Spa, shar
Giovanni Orlandi

Having forayed into India recently in association with Cera Sanitaryware Ltd, Novellini Group is contemplating to set up a manufacturing plant and infuse a fresh fund of two million Euros in 2-3 years. Giovanni Orlandi, Export Manager, Novellini Spa, shares his thoughts.
 
Subhro Prakash Ghosh (SPG): Tell us something about Novellini Group. 
Giovanni Orlandi (GO):
Established in 1970, Novellini Group is the European leader to produce shower enclosures and whirlpool baths. Novellini produces 12 lakh units of shower enclosures and 2 lakh units of wellness products every year. It has manufacturing plants in Italy and France. The products of Novellini have been made with advanced features such as thermostatic mixers, aroma therapy, chromo therapy, disinfection, etc. 

We have marked our presence in around 60 countries. Before venturing into India, we had entered Dubai and Brazil. 

SPG: After about six months of foraying into India, what kind of response have you started getting from the Indian customers? 
GO:
Before venturing into India, we did a big market research on customer potential and likings. We believe that Indians like trendy and lifestyle products in their daily lives. Through our research, we have understood that the likings and demands of our target Indian customers are very much similar to the Italians. Since the demand for the wellness products is increasing in India, we have identified Cera Sanitaryware as our perfect partner to market our products as they have a big market here. Having a dealership agreement with them, we are gradually spreading over the Indian market. We have got a warm response. 

SPG: What all products do you offer? What is the price range of the products? 
GO:
Understanding the Indian customers, we have introduced shower enclosure, steam cubicles, equipped panels and hydro massage bath tubs. The USP of our product is that all our collections exude Italian style, quality and design. 

The price range of the products launched in India varies between Rs 60,000 to Rs 10 lakh. 
 

SPG:  What is your expansion plan in India? Kindly give us a figure of your investment plan in India. 
GO:
In 2010, we want Cera to market our products through their exclusive retail stores. However, considering the steady growth of the Indian retail market, and on the other hand, increase in our experience, we have plan to open exclusive showrooms in some of the major cities at first, but presently, it is too early to speak on the time and venues. Regarding the establishment of the manufacturing unit in India, I would say that we believe India is an important market for us and we have a plan to set up a manufacturing facility in this country. Though, it would take 3-4 years depending on the response we get from the market, however, setting up a manufacturing facility will explore the options to export the products from India to Saudi Arabia and the entire South-east Asia.

Through our research we have recognised the influence of Chinese products in our category in this country, hence we believe we need to compete with those low-cost service providing companies by offering premium range products. To have a nationwide footprint, we have already decided to pump in two million Euros in the next 2-3 years in different activities.  
 
SPG:  What was your last annual turnover and how was it affected by the economic slowdown? What turnover do you expect in the coming years? 
GO:
We achieved a turnover of 215 million Euros last year. Despite economic slowdown, our turnover was increased by 10 per cent. We are looking at generating 400 million Euros in the period of five years. 
 

Giovanni Orlandi, Export Manager, Novellini Spa
 
 
 
 
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