New Delhi, June 30--Germany-based laminated flooring major Kronotex Fussoboden GmbH & Co has entered the Indian market with a wholly owned subsidiary ‘Kronotex (India) Ltd. The company is looking at setting up a manufacturing plant in India to cater to the markets of India, South Asia and Australia markets.
Speaking to The Financial Express, Kronotex India CEO Vijay K Sharma said the company would set up a 5 million square meter a year laminated floor plant in India with an investment of over Rs 50 crore by the year 2005. This will be in addition to the immediate investment of $2 million in Indian operations, largely towards marketing. Adds Mr Sharma: ‘‘Currently, Kronotex has a 500 million a year plant in Germany. It has plans to set up one plant each in the US and India now.’’
Kronotex, which has begun its operations with a test phase sales of Rs 2 crore, has not yet finalized the manufacturing location. With a local manufacturing facility, the company hopes to cut its costs significantly from Rs 150-160 to per square feet to Rs 70-Rs 70 per square feet.
Says Sharma: ‘‘Under the proposed plan, we would save on customs duty of 52 per cent. However, we will have to import paper (laminated sheet) from Germany.’’
Kronotex estimates India to be 5 lakh million square meter a year market, which is growing at a fast pace of 50-60 per cent. The company’s products have applications in places like kitchens, hall way, offices, gym, hotels and shopping malls and showrooms.
Kronotex says that the wood component in its flooring is 80-85 per cent of dry material. ‘‘For the manufacturing of core structure, we use only freshly cut trunks of pine within the immediate vicinity of our factory. This is a natural product of forest management, so Kronotex contributes to the eco-friendly use of the forests.’’ The company is running a multi-country mobile shorwoom promotion to show its products. Having travelled major cities of Russia, the mobile shorwoom will now cover 10 cities including Delhi, Agra, Jaipur, Mumbai, Chennai.
