Shankara BuildPro plans expansion

November 20, 2016 11:12 pm | Updated December 02, 2016 04:41 pm IST - MUMBAI:

BUILD QUICK: The company, a home improvement player, aims to expand in the five southern states, among others. File photo

BUILD QUICK: The company, a home improvement player, aims to expand in the five southern states, among others. File photo

Shankara Building Products Ltd, (Shankara BuildPro) a leading player in the organized home improvement retail space, has lined up expansion plans to further penetrate into markets in the southern part of India where it has presence, a top company official said without quantifying.

The company would further enhance and expand its existing product portfolio in a network of 100 Shankara BuildPro retail outlets spread across 10 states including Karnataka, Tamil Nadu, Kerala, Andhra Pradesh/Telengana, Odisha, Puducherry, Goa and Maharashtra, the official added.

“We intend to expand our footprint to address the growing demand for home building and home improvement products. Homemakers and architects prefer to source all building materials from one supplier due to added comfort and assured quality. This concept is fast catching up in urban and semi urban India,” Sukumar Srinivas, Managing Director, Shankara Building Products Ltd said.

“We will also leverage on our existing logistics capabilities and backward integrated processing units to further expand our retail operations across India,” he said

The company has 11 processing facilities and 58 warehouses to cater to the demand.

The company’s customers include homeowner who wishes to build or renovate their house and architects/interior designers/ contractors who undertakes such projects.

The company’s product range include key building materials namely cement, structural steel, bricks, paints, plumbing (PVC pipes), ceramic tiles, sanitary ware, plywood & laminates and lighting whose market size according to CRISIL Research is estimated at Rs. 1.5-1.8 trillion.

Shankara BuildPro said it would introduce new categories such as electricals and decorative paints.

Currently it has more than 12,568 SKUs in its portfolio. It also has plans to increase its own branded product offerings either through in-house capabilities or through contract manufacturing.

Typically, the home owner ends up visiting multiple dealers/ retailers to purchase various building materials spending more time while organized players offer multiple building materials across various brands and segments under one roof, making the process hassle free.

For the year ended March 31, 2016 the company reported net profit of Rs 42 crore on sales income of Rs 2036 crore. It has filed a Draft Red Herring Prospectus with SEBI to mobilize about Rs 400-450 crore which will go towards providing part exit to a private equity investor and retirement of some high cost loans.

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