Currently, the Indian furniture industry is going through a robust phase of growth. Growing at more than 20%, the Indian furniture industry is expected to double its growth in the next five years.
FDT: How is the Coronavirus outbreak in China going to impact local businesses dependent on Chinese factories?
Manish Arora: First of all, I express my sincere sympathy to the Chinese people and pray for the speedy control over the epidemic. In India, mostly the low-end segment of the industry is largely dependent on Chinese imports hence they will be impacted for sure. However, the emerging situation will boost the high-quality manufactures in India since the demand for superior products will rise considerably and the consumers will also be the ultimate beneficiaries. Being a premium global brand REHAU is well-positioned to cater to the middle as well as the upper segment and the current situation has emerged as an opportunity, rather a responsibility as well to fill the supply gap, particularly in edgebands segment. We are committed and fully prepared to provide seamless supply of edgebands to meet the upsurge in demand in Indian markets. REHAU RAUKANTEX uPVC edgebands blend aesthetically with all kinds of furniture and are a perfect solution for kitchen cabinets, cupboards, table edges and countertops for offices. Non-Toxic, Anti-Bacterial, Anti-Fungal, Eco-Friendly, Heat Resistant and DOP Free REHAU RAUKANTEX uPVC edgebands enhance the interior of any home and creates more aesthetically pleasing environment for the people using the space.
FDT: What is your view on the customs duty hike on imported furniture and parts? How do you think it will impact the furniture industry of India?
Manish Arora: The government of India has hiked the customs duty to discourage cheaper imports and to bolster the ‘Make in India’ initiative. Hence it’s good for the growth of the industry as well as the Indian economy. Now Indian manufactures are in a better position to compete in the market and there will be price parity. For high-end manufacturers like us, the hike of 5-10% in customs duty hardly makes any difference, because our customer segment is totally different. It has only impacted the operators in the grey market engaged in cheap imports from China. The furniture industry of India will not be impacted much, in fact, the hike will help Indian manufacturers to utilize their capacity in full to reach a highgrowth trajectory with the government’s ‘Make In India’ initiative.
FDT: How do you foresee the future of the Indian furniture industry in the next 5 years?
Manish Arora: Mostly Indian furniture industry is unorganized. With the entry of various online companies in India, more and more companies are making efforts to get organized. The consumers are also becoming more aware of the benefits of buying furniture from organized players. When we talk about Furniture from REHAU’s perspective, these are excellent space solutions like cupboards, cabinets, or kitchen. Currently, the Indian furniture industry is going through a robust phase of growth. Growing at more than 20%, the Indian furniture industry is expected to double its growth in the next five years.