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Strategies & Market Trends : India Coffee House -- Ignore unavailable to you. Want to Upgrade?

To: Mohan Marette who wrote (9002)	10/26/1999 9:53:00 PM
From: Mohan Marette	Read Replies (1) \| Respond to of 12475

Groupe Seribo (France) to pick up stake in Gautier (India) gautierindia.com Mumbai, October 26 (HT Correspondent) Groupe Seribo of France which is in technical collaboration with Gautier India Ltd, a division of Zuari Industries Ltd, is keen to pick up a financial stake in the company. Talks between the two have been going on for some time now but due to hassles caused by government control the stake in Gautier India by the French group had not been materialising. Speaking to The Hindustan Times, Gautier India managing director K K Gupta stated that the company was keen to give a stake of 50 per cent to the French company. "The increase in stake may not come through a dilution of our stake but perhaps through a fresh increase in equity," Gupta stated. Gautier India is engaged in the manufacture of premier brand of French furniture in the country. The company commenced marketing in June 1998 and has since exported as much as 30 per cent of its production to France. The products are hi-tech and are catering to the middle and upper middle class segment. According to Gupta, one of the unique features of the company is that it would for the first time be offering hire purchase for its range of furnitures. "The other unique feature is that we are offering UV finishing which is one of our big strengths," Gupta stated. According to him the company was targetting a turnover of about Rs 45 crores by the year end. To meet this target the company's marketing area would cover practically the entire country by the end of the current financial year. Meanwhile, the company announced the launch of its furniture range in Bombay. Gautier India expects the city to be a big market for it. According to Gupta, the size of the market in the country is estimated at a huge Rs 60,000 crore but so far there has been very little contribution from the organised sector. According to him, almost 80 to 90 per cent of the market comes from the unorganised sector. Gautier India Ltd has set up a Rs 60 crore, fully automated, state of the art furniture plant near Chennai at a cost of Rs 60 crore. The plant one of the largest in Asia has the capacity to produce 2,00,000 units of panel-based furniture per year.