@Home – Furniture Retail – Financials + Expansion Plans

@Home [by Nilkamal] is a chain of complete home decor stores across the country that retails a wide range of imported furniture (readymade furniture), soft furnishings and home accessories (100% trading venture). ‘@home’ with its international style retail format has been one of the first organized movers in the industry which created its own identity as a specialty store for home decor. It is spread across the country with 15 stores in 11 cities.

Business Outlook for @Home – By 2013, Nilkamal intends to have a nationwide presence with 50 @home stores. @Home procures contemporary and quality products from China and South East Asia. ‘@home’ is positioned as a Home Maker store and target its brand to socio economic class A & B customers in the age group of 25-45 years, with lifestyle aspirations. @home offers its customers a unique convenience to select and buy coordinated furniture, furnishings and accessories, under one roof. @home provides Free Interior Planning Service through 3D Imaging Software helping customers to decorate their homes. Professional guidance in buying the right products, interest free loans and convenient home delivery and assembly perfectly delivers the brand promise. @home has invested significantly in back-end systems. The IT process enables smooth operational functions.

Financials of @Home Operations – Turnover for FY09 is at Rs. 125 cr, witnessing a growth of 96% over FY08. @home presently holds retail space of around 2,34,000 sq. feet. Nilkamal invests about Rs. 3.5 cr per store and overall, this venture is expected to break even in another 2 years. Each store has per month sales of about Rs. 70 lacs and houses inventory worth about Rs. 70-90 lacs. @home enjoys gross margins of about 50-55%. At the EBIT level, each store has a loss in the range of about Rs. 70 lacs to Rs. 1 cr per year. In FY11, the company plans to open about 4-5 stores.

With unorganized players share of the Indian Furniture market at 90%, @Home can easily eat into the former’s share and grow.