25 , November , 2022
"REAL ESTATE DEVELOPERS OPEN A CRITICAL OPPORTUNITY AREA FOR US"
Realty Dekho team, in an exclusive and extensive interaction with Sudhanshu Pokhriyal, Chief Executive Officer, Bath & Tiles, Hindware Limited gets to know about company’s expansion plans, YoY growth, company’s latest offerings, inflation tackling strategy and company’s growth down the line. Here are the excerpts.
Realty Dekho (RD): With the pandemic almost over now, many leading real estate developers have re-initiated their expansion plans, which is expected to further gain momentum. What kind of growth are you anticipating seeing in this scenario?
Sudhanshu Pokhriyal (SP): The impact of the pandemic in India has been largely disruptive. It was surely a period of unpredictability. Real estate as a sector suffered a setback, primarily because of the lack of a future forecast. Thankfully, over the last one year or so, the situation has become more positive with the sector moving towards an upward trend. In the back of an improving environment, we are on optimistic movement on the business front. We’re anticipating a growing demand from consumers upgrading existing homes including bathrooms for safe & hygienic products. Currently, we have planned a focused expansion drive by continuously introducing products aligned with the burgeoning needs, strengthening our distribution network by adding 75+ additional distributors, launching brand shops and tapping newer markets.
Moreover, we are reinforcing our commitment to our customer by offering a variety of innovative and efficient solutions we offer across the value chain such as our luxury brand Queo which is synonymous to European bath lounges, our premium and iconic brands Hindware and Hindware Italian Collection for the discerning consumers and Hindware Italian Tiles our premium tiles segment.
RD: What is the percentage share of revenue realization from the Sanitary ware segment? What is the YoY growth you are witnessing?
SP: Hindware bathware business delivered yet another quarter of industry-leading growth and continued to maintain its market share. In Q2 FY23, revenue from Operations stood at Rs. 379 crores, registering a growth of 16% Y-o-Y.
The sanitaryware and faucets business continues to post industry-leading growth on the back of its innovative product mix, new product launches, and strengthened distribution and retail network despite rising input prices, such as gas.
RD: What kind of offerings are you extending to the real estate developers, which are minimalistic in design and yet offer a unique bathing experience?
SP: Real estate developers open a critical opportunity area for us. We have invested a lot of time to understand the evolving consumer aspirations and addressed the same through meaningful product innovations. Our product innovations continue to be centered around the optimization of ‘technology’ to provide a seamless experience to the end user. As consumers become more hygiene and environment conscious, our vast range of ‘touch-free’ faucets and water closets have emerged as the most preferred choice. Previously, we introduced 'Automate', India's first intelligent wall-mounted closet with symphonic flushing and vortex technology in water closets, which provides a distinctive flushing mechanism making it more effective while consuming less water. Our faucets comprising water-saving aerators with a unique PCA DC technology that ensures a consistent flow of water across all pressure settings, are minimalistic in design and yet offer a unique experience.
Additionally, I am happy to share that we launched a slew of innovative products and designs during the quarter. Our few marquee bathware products, including Easy Clean, a self-cleaning basin, and Ellipse, a basin with space for utility items such as a toothbrush, toothpaste, etc. which were launched recently have been well received by the consumers. We will continue to map consumer needs and work towards introducing products in the ceramics and faucets categories that enable our consumers to make the most of their bathroom.
RD: How do you tackle inflationary pressure to ensure that this inflation conundrum doesn't get passed on to the consumers?
SP: We continue to focus on driving growth and are confident of sustaining the same in the future. While inflationary pressures are fluctuating, which may necessitate us to undertake price hikes in the coming quarters to preserve margins. However, as leaders in the bathware segment and consumer-oriented brand, we will ensure to minimize the impact on our end customers, influencers and distributors as much as possible.
RD: What kind of growth do you anticipate in the sanitary ware industry over the next 3 years?
SP: India's sanitaryware market is expected to witness the highest growth over the next few years. An upsurge in the demand for ceramic bathware from a variety of commercial establishments will be the major driving factor for the sanitaryware market. And the government’s push for infrastructural growth, schemes toward smart cities, pipe replacement demand from residential real estate, and rising private & public investment in residential construction are further propelling the market.
The rising number of bathroom remodelling in residential projects is creating value-grab opportunities. Subsequently, ceramic shower tiles are promoted for their ease of modification. Furthermore, the utility of vitrified ceramic tiles is becoming more common in bathroom renovation projects. All these factors are projected to propel the growth of the ceramic sanitary ware market.