Global furniture maker Knoll partners Godrejhttp://www.afaqs.com/news/story/35916_Global-furniture-maker-Knoll-partners-Godrej

Move at a time when others such as IKEA are eyeing presence in India.

The US-based home and office furnishing major Knoll has entered into a dealership and brand-licensing agreement

with Godrej Interio, a unit of the Jamshyd-Godrej-promoted Godrej & Boyce, to manufacture and market its home and

office furniture. The move comes when international furniture majors such as IKEA are eyeing a presence in India.

IKEA has sought approval to invest Rs 10,500 crore to set up single-brand retail outlets in India. The government has

given indications that the Swedish major, the largest furniture retailer in the world, is likely to get the go-ahead to set

up shop.

If IKEA does indeed get the nod, it is likely to give a boost to the domestic furniture market, which, according to

industry estimates, is pegged at Rs 40,000 crore. This includes both the organised and unorganised segments.

Organised, pegged at Rs 5,000 crore, forms 12-13 per cent of the overall market. Its growth seems to be drawing the

attention of global players.

Anil Mathur, chief operating officer, Godrej Interio, says the organised furniture market is growing at double the rate of

the overall market at 20 per cent. Players such as Godrej Interio are bracing up for the onslaught from big brands.

Mathur says the company will add some 15 stores in the current fiscal, taking its overall tally to nearly 150.

By next year, the company whose turnover is Rs 1,400 crore, is looking to take its store count to 200, Mathur said.

Godrej is also looking at more dealership and brand licensing tie-ups with international brands to beef up its portfolio.

Besides Knoll, the company has a similar arrangement in the healthcare furnishing space with the Netherlands-based

Linet Group, which is the third-largest maker of hospital and nursing-home furniture in the world.

Besides Godrej, companies such as Wipro Consumer Care, which has a furniture business besides lighting and

FMCG, is also looking to beef up its portfolio in view of the growing competition. The company is counting on tie-ups

with international designers to push its office furniture aggressively into the institutional segment in the country. Wipro

executives say that the business holds enormous potential with multinationals stepping into the country and local

players wanting to refurbish their office spaces to give it an international look and feel.

Retailers such as Home Town from the Future Group, Home Centre promoted by the Dubai-based Landmark Group

and Homestop from Shopper's Stop are some of the other players in the space. Then there are companies such as

tile and bath fittings major H R Johnson, which are peripherally present in the furnishing space with its modular

kitchens business - a segment that is beginning to take off in the home furnishing market. Besides H R Johnson,

Godrej Interio, Veneta Cucini and Kutchina from the Kolkata-based Bajoria Group also operate in the segment.