Small Industries Development Bank of India (SIDBI) has invested Rs 6 crore ($1.06 million) in Ahmedabad-based Timbor Home Ltd, a manufacturer and retailer of solid wood furniture, modular kitchens and doors.
Although it could not be immediately ascertained if the investment is in the form of debt or equity, the company said that it would use the funds to set up high-end ‘IKI’ kitchen stores across India in 2012. At the current market price, Rs 6 crore investment in equity would give SIDBI around 14 per cent stake in the pubic-listed firm, as per VCCircle estimates.
“Through IKI Kitchens, we are bringing to India the newest concept of ‘intelligent kitchen’ by offering customised hi-end kitchen solutions through a world class range of cabinetry, shutters, storage and hardware, including exclusive handles and special kitchen light fittings. With the Rs 6 crore funding from SIDBI, we will be able to put in place 30 such high-end kitchen stores across all the major cities in India during this financial year,” said Anant Maloo, chairman & MD of Timbor Home.
Currently, the company operates 100 plus ‘Timbor Cucine’ modular kitchen stores, catering to the mass-medium price segment. The IKI Kitchen stores will be targeting the top end of the market.
The modular kitchen market in India is still at a nascent stage but has high growth potential with increasing disposable incomes and changing lifestyle preferences.
Founded in 2000, Timbor Home operates as a manufacturer-retailer, with retail outlets operating on a franchise model. Timbor markets its products under the brand names Timbor Cucine (modular kitchens), Timbor Doors (doors & door frames), Timbor Home (home furniture) and IKI Kitchens (hi-end kitchen solutions using ‘Hettich’ hardware and accessories).
In January 2012, HT Media, along with DB Corp, invested $1.11 million in the company. Times Private Treaties, the private equity arm of Bennett, Coleman & Co. Ltd, had also invested $0.65 million in the firm.