HYDERABAD: Dubai headquartered Danube Home, part of the Danube Group, makes India foray from Hyderabad on Thursday by opening its first store, nearly a quarter after Swedish furniture giant IKEA opened its first India store in Hyderabad.
The group with $1.3 billion revenue last year has interests in property development, building materials and home furnishings.
The Danube Home store, spread over 60,000 square feet, is located in one of India’s largest malls, Sarath City Capital Mall, in close to the IKEA store in the Gachibouli region of Hyderabad.
Danube Home, which sources products from over 20 countries including the US, Spain, Italy, Turkey and Malaysia, among others, proposes to offer over 30,000 affordable home furnishing products under one roof. It also sources nearly a third of products from India.
Apart from offering pocket friendly prices, the furnishings giant also offers free interior designing services from the expert interior designers from the store. Further, Danube Home offers a minimum of one year and up to seven years of warranty on its products with an assurance to fix issues or replace products.
In all, Danube Home plans to invest over Rs 1,400 crore in India to set up 35 stores across the country over ten years, which includes 10 large format showrooms, a large logistics hub, transport network and associated facilities over next five years involving Rs 400 crore.
“We are targeting the country’s growing millennial population, middle class, dual income group, and upwardly mobile professionals which comprises a huge market for us,” said Adel Sajan, Danube Home’s director, adding that “The entry in India is a significant step in our global expansion plan.”
Telangana industries and commerce secretary Jayesh Ranjan said Danube has invested Rs 40 crore on Hyderabad store, offering 200 jobs. He hoped that the entry of Danube Home to Hyderabad should help further enrich the retail ecosystem in Telangana.
The India foray of Danube Home comes at a time when investment in 100 Smart Cities project is expected to transform the infrastructure and urban environment to a new level and attract more skilled professionals.
Speaking to ET over phone from Dubai in August, Adel Sajan said India provides them an opportunity to earn at least Rs 1,000 crore a year of sales and the model of large format stores on leased premises was aimed at faster expansion.
Danube Home, which boasts of a mix of over 50,000 products at affordable prices in home furnishing and improvements, now has stores across West Asia in countries including the UAE, Oman, Bahrain and Kuwait.
In a pre-launch statement, Danube Group founder and chairman Rizwan Sajan said, “Our planned foray in the Indian market comes at a time when Indian economic growth rate has started to accelerate defying global economic growth trends.”
The development was reported by retail.economictimes.indiatimes.com