Market Trends has shifted; there is a jump in demand for home décor products: Mihir Parekh, ED, Nilkamal Limited

Mihir Parekh, Executive Director, Nilkamal Limited, speaks about the new product range associated with COVID-19, collaboration with Reliance Foundation, expansion plans, future strategy and outlook among others during a candid chat with Swati Khandelwal, Zee Business. Edited Excerpts:

Q: Nilkamal Limited has launched a product range related to COVID-19 pandemic. Update us about the number of products that have been launched and the response that you are getting on them?

A: Nilkamal – at the very start of the coronavirus – identified that there will a need for hospital beds and infrastructure in which crisis management infrastructure would be a critical component in India. So as a leading furniture company, Nilkamal’s team quickly developed some solutions for the purpose like seven-position isolation bed, which helps patients with breathing difficulties; quarantine beds, they are steel beds for quarantine zones; quick COVID-bed, it is an innovative lightweight bed solution that can be built in only 3 minutes and can be transported across India at an ease and is ideal for make-shift hospitals. In addition to this, we have also developed certain social distancing products like virus guard divider that is used in offices within workstations and travel guard partition they are dividers in the bus between seats.

Altogether, we have received good response for all these solutions and we have already supplied 2,000 quick COVID beds in collaboration with Reliance Foundation to Sardar Patel COVID centre in Delhi. We have also supplied 1,500 beds and cabinets in Navi Mumbai hospital, 1,000 beds in Mumbai’s BKC hospital and several corporations have also accepted these products for their CSR as well as for use in the house. 

Q: These products have been created for COVID purposes. So, let us know about the kind of margins you are seeing from these products or you are selling them cost-to-cost?

A: We have tried to make these products very low cost and value product and in many cases, we are collaborating as we have collaborated with Reliance Foundation for Delhi Hospital in which we have donated 2,000 beds free of cost with a joint effort. At the same time, we are working with many governments to do the same. Nilkamal will contribute as much as it can - as a single company it is not possible – and is joining hands with other corporate and governments to provide this at the lowest cost that is possible. 

Q: As a group what is your strategy and outlook for the future to expand and grow your business? What kind of activity as production has been started at your factories? Also, tell us about the new products that you are identifying over and above COVID product centre?

A: In general, we have seen that the trends have shifted a lot in the market with work from home becoming more prevalent. So comfortable office sitting solutions like office chairs for homes and desk we have seen a good jump in the demand for the home décor products. We have started a range of Nilkamal mattresses, which is high in demand, by now. So, we are having an eye on the changing trends and are developing products in accordance with it. Like more work from home solutions, home storage and home improvement furniture. So, this is a range that we are developing over and above COVID. And even within COVID, we feel that COVID is one crisis and we should develop products that are going to help India even in a future crisis. So, we are also developing products that not only today but can be used in the future as well for people, government and more. 

Q: Tell us about the company’s plans for expansion point of view in terms of CAPEX that has been planned for introducing these products and what is the debt or financial position of the company?

A: We have just released our quarter four results for the last financial year, which is publicly available, so all the financial numbers can be seen there. As far as future expansion is concerned then our digital strategy will be our key focus. E-Commerce is growing tremendously in India, so, we will invest there to improve our supply chain, warehouses and depots that can benefit us in the digital strategy. In further growth and CAPEX, we are very comfortable because Nilkamal is having a debt-free status. We have the confidence that we can take steps whenever there will be a requirement in the future. We are very agile and quick in this scenario. 

Q: What kind of work is being done from the point of technology tie-ups and are you looking after new technology partners or working indigenously on it? What kind of activities is seen on possible technology tie-ups?

A: Digital strategy has been our focus area for even more than the last 10 years. So, we have always implemented the latest technology. Since many years we have been SPA enabled in which our warehouses, factories and depots are connected through SAP. When e-commerce has taken its place in the market then we’re available on all leading platforms like Amazon, Flipkart, Pepperfry as well as on our e-commerce platforms. So whenever we have seen an opportunity in terms of technology then we focus on it. We have some joint ventures as well with companies to produce new innovative products that are helpful for India and we have made a lot of efforts on that front.

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With the changing environment, we are looking into more online selling, digital marketing and making efforts to improve technology focus because physical retail and physical selling are shifting to the online platform. So, across our products, we are making an effort to make our products available online and through digital means.