Anant Maloo, CMD, Timbor Home Ltd is armed with Bachelor of Commerce and Post Graduate Diploma in International Business from International Management Institute (IMI), New Delhi. Anant has associated with large industrial houses like Birla, Tata, and Eternit group for their products such as cement, plywood and building boards. He has over 15 years of experience in the cement, building material and timber industry.
Timbor Home Ltd. is the first and only in the Indian furniture industry to be fully integrated by having its own plantation, wood treatment facilities, manufacturing plants as well as retail stores. Timbor Home is an international standard manufacturer and retailer of Solid Wood Furniture, Modular Kitchens & Doors. The company has a pan-India distribution network of 140 showrooms, which include 6 large format company-owned stores. These stores are spread across 19 states and 72 cities, and cover a total retail space of about 150,000 sq. ft. The company was founded in 2000 by Anant Maloo, CMD of Timbor Home Ltd. It has been awarded the prestigious FSC certification by the Forest Stewardship Council, USA, certifying that the company’s products are manufactured using timber from sustainable sources and are certified Green. Going forward with this, the company also plans to avail carbon credits in the future, with its forestry project. Products of the company are marketed under the brand names ‘Timbor Cucine’ for modular kitchens, ‘Timbor Doors’ for doors & door frames, ‘Timbor Home’ for home furniture, ‘Timbor Cook Care’ for cookware, and ‘IKI Kitchens’ for hi-end kitchen solutions.
Replying to Yash Ved of IIFL, Anant Maloo says, “The Indian furniture industry has multiple opportunities, especially in the modular, office and contract furniture segments.”
What is outlook do you see for Indian furniture industry?
CSIL Milano has classified the Indian furniture retail market as the 14th largest in the world due to rising purchasing power of over 400 million middle class people. This US$8bn industry has been growing at 30% compound annual growth rate (CAGR) in just the organised sector, which accounts for only 15% of the entire industry.
According to a Cushman & Wakefield report, the demand for residential spaces is forecast to hit 4.25 million units while the demand for office space is expected to hit 400 million sq. ft. between 2010 and 2014. Another major segment is contract furniture, which is driven by the growing hotel development and tourism demand.
All these factors, clubbed with the changing consumer demographics and increase in spending on lifestyle products bodes well for the Indian furniture industry.
How many stores do you have? What are the expansions plans?
We have 130 stores across 80 Indian cities. Our immediate focus is in setting up of our high-end IKI stores, of which we may open 30 in the near future. Going forward, we also plan to expand our plantation project.
Comment on your capex plans?
Our current capex plan stands at Rs150mn.
What are the challenges and opportunities in this sector?
The foremost challenge in the furniture industry is that it is highly unorganised. More than 85% of the units are fragmented, micro-scale enterprises. There are quite a few single store local brands but hardly any organized retail furniture chains.
With respect to modular kitchens, sourcing of components is a major issue, as is ensuring quality standards. Lack of skilled workforce is another problem faced by the furniture industry. On the other hand, as stated earlier, the Indian furniture industry has multiple opportunities, especially in the modular, office and contract segments.
Give us a break up of revenues?
About 60% of our revenues come from modular kitchens.
What growth rate do you see in modular kitchen market?
The modular kitchen segment is worth around Rs 200bn. We expect it to continue to grow annually at 50% for the next few years. This market has immense potential and will continue to grow at a steady rate, which is why we decided to move into the premium kitchen space with our new IKI Kitchen stores.
Comment on your exports?
We are exploring opportunities in the overseas markets and are hopeful to start exports in this financial year.
Brief us about your international plans?
Currently, we have two stores in Nepal. We definitely plan to go global, and are working towards that.
What is your current debt?
Our current debt is at Rs 300mn.
What is current promoter holding?
Current promoter holding stands at 52%.