Home Solutions Retail India (HSRIL), a part of the Future Group, will soon retail lightings and electrical products.
This is the first time a big corporate retailer will foray into the Rs 80,000-crore (Rs 800 billion) market, which is largely unorganised and dotted with small and medium city and region-specific players across the country.
HSRIL will open the stores under the Bijli Ghar brand. The company already has a joint venture with Asian Electroinics and Idiom Design & Consulting to launch the products.
According to an estimate of the Indian Electrical and Eletronic Manufacturers Association (IEEMA), the market for electrical and electronics goods is around Rs 80,000 crore (Rs 800 billion).
While the market for lighting products is estimated at Rs 1,500 crore (Rs 15 billion) and is growing at a rate of 15 per cent every year. Electical products carry a margin of 10-12 per cent and lightings 20-30 per cent.
Initially, the company will launch the stores in its 80 Big Bazaars across the country and, in the next six-nine months, the company is planning to open its standalone stores. It is targeting revenues of Rs 100 crore (Rs 1 billion) in the first year of the operations.
"We saw the explosion in the housing industry and also the need for home decor and lighting. It will be a one-stop shop for all the lighting and electrical needs for our buyers," said Hemchandra Javeri, Chief Executive of HSRIL.
HSRIL has formed another JV with Asian Electronics, called Asian Retail Lighting, to sell lighting and electrical products to retailers such as Pantaloon, Provogue, Metro Cash-&-Carry and others.
HSRIL runs furniture and home furnishing stores such as Collection i, Furniture Bazaar and electronic stores, such as e-Zone and Electronic Bazaar.
The company is planning to invest Rs 600 crore (Rs 6 billion) in the business and the revenues are expected to touch Rs 1,000 crore (Rs 10 billion) this year and Rs 4,000 crore (R 40 billion) in the next couple of years.
