Hindware Home Retail, a subsidiary of Hindustan Sanitaryware Industries, plans to form a revenue sharing partnership model with real estate developers to shore up with the declining retail rentals, according to a top company official.
DK Jairath, business head, Hindustan Sanitaryware, said, “Hindware Home Retail is in discussion with developers in various cities to have its ship stores in their properties. We are also planning to invest Rs 2.5 billion by 2012-13 for setting up another 48 outlets of Evok in metros, tier I and II cities, as it aims a turnover of Rs 4 billion.”
However, Jairath did not specify the real estate developers that the company is in talks with, he went on to mention, “The real estate developers are mostly north India-based.”
“The new revenue sharing model would be more beneficial in a long run, as it would allow them to select sites where the revenue turnover is likely to be assured,” added Jairath.
—IndiaRetailing Bureau
