New Delhi: Amid growing demand for household design, two-wheeler maker Hero Group has ventured into home decor market and plans to initially invest Rs40 crore to launch 40 lifestyle stores across the country in the next two years.
The company has launched two stores, one each in Gurgaon and Delhi, and would open the third one in the city by November. It plans to open 18 stores by March 2008.
It is also looking to make overseas foray by rolling out a retail home decor outlet in Dubai.
“We are going to open 40 stores across the country in the next two years with an initial investment of Rs40 crore,” Hero Motors Managing Director Pankaj C Munjal told PTI.
The group would open its chain of lifestyle and home decor stores - OMA - in 22 cities, including Tier II ones, he said, adding “smaller cities have a huge potential as they don’t have much choice and variations.”
It has planned to open five stores in the national capital region and two in Mumbai.
When asked about the revenue, OMA Promoter Charu Munjal said, “We are expecting a sale of Rs3-4 lakh from each store.”
The company has tied up with furniture store - Proform for its Gurgaon outlet. Out of 40 stores it has planned to open, 35 would be on standalone basis and the remaining would be with Proform.
For this venture, the group has signed an MoU with Denmark’s Villa Collection. “We have a supply, interior decoration and new design import contract with the Danish firm,” Pankaj Munjal said.