Pergo Discusses Expansion in India

Kolkata, India, March 31, 2006--Pergo India Private Limited that deals in laminate flooring is planning to expand its operations in the east. In the retail segment, the company aims at opening four franchise outlets in this regions including one in Kolkata, said K R Shivshankar, chief executive officer, Pergo India at a press meet conference. "In India, the market size of laminate flooring stands at approximately one million square meters. Pergo's market share in the high end segment is about 80 per cent, in the high and mid-segment combined, it is 50 per cent, and including the low end segment, it is 30 per cent", said Shivshankar. He said that most of the other players in the market imported boards Pergo was the "only organized player in India in this segment". The boards, whose thickness vary between 8 mm and 11 millimetre and installation cost ranges from Rs 90 to Rs 260 per square foot, are imported from the company's manufacturing centres in Sweden and Malaysia. Shivshankar claimed that the boards were biodegradable and did not require cutting down of trees for their manufacturing. In the east, the company expected to do business with builders like the Unitech and Ambuja groups. However, 60 per cent of Pergo's sales came from the retail sector and a considerable portion from institutions like hotels, said Shivshankar. Pergo is hoping to cover 30,000 square meters in this region by the end of next year. The company would be having a an approximate turnover of Rs 20 crore at this end of this financial year and would hope to increase that to Rs 50 crore by the end of 2006-07, he said. Pergo hoped to cover half million square meters in the same period and has clocked a 70 per cent growth in sales volume over last year.