Wonderchef Eyes Rs 500 Cr Revenue; Plans To Open 12 New Outlets
The brand is studying the possibility of owning the manufacturing. Currently, it designs the moulds and partner with contract manufacturers to produce as per our requirements
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In last seven years, Wonderchef has grown in the cookware and healthy appliances category. The focus of the kitchen appliances brand is to strengthen its current position in the market
“Everything we would do over the next three years would be in this direction till such time we are one of the top three players in kitchenware industry in India. Once we are large enough and growth possibly slows down, then alone Wonderchef shall think of any sort of business diversification.” Said Ravi Saxena, MD, Wonderchef
The brand is studying the possibility of owning the manufacturing. Currently, it designs the moulds and partner with contract manufacturers to produce as per our requirements.
It is planning to begin with one large unit in Mumbai. Saxena feels implementation of GST will allow them to be located anywhere without any compromise on physical efficiency. “Besides better control on our quality, our own plant would enable faster turnaround time as well as about 200 basis points improvement in margins.” Added Saxena
Currently, exclusive outlets of Wonderchef only accounts for 5 – 7 per cent of their total sales. The group is planning to open 12 next Year by next year in strategic locations. The outlets are kept small to enable high sales per square foot and are profitable in most months. Some months throw challenges depending on seasonal and regional patterns.
The kitchen appliances brand is all set to cross Rs 200 crores in the current fiscal year and eyeing to clock Rs 500 Crores in next three years’ time.
Wonderchef bets big on Omni-channel distribution which creates strength in small and fringe towns. Their direct marketing network with over 40,000 women penetrates over 1000 small towns including places like Arunachal Pradesh, Nagaland and J&K. The retail distribution extends in about 5000 outlets in about 250 towns and the brand service over 4000 towns via TV Shopping and Internet-based orders.
The brand prepared well for the new tax reform GST and worked with leading consulting firms for the smooth transition. “We are looking forward to achieving better competitiveness, thanks to GST since about 60% of our Industry is un-organized and continues to get away without paying all relevant taxes,” Said Ravi Saxena.