Index revives plan for India franchise

       Index Living Mall Co, the Thai homefurnishing retail chain, is reviving its plan to open franchise stores in India after its first deal two years ago did not get through.
       Jarinthorn Patamasatayasonthi, the company's managing director, said the business plan was reviewed after it was contacted by a new Indian investor,who had visited Index Living Mall in Dubai recently.
       "We saw a huge opportunity in the Indian market because there are only conventional furniture stores available in the country. While the Indian economy is booming, there is less competition [in the segment] there," she said.
       Index was in talks with another Indian investor in 2006 but the deal could not be concluded.
       Verachai Kunavichayanont, vicechairman of the furniture club under the Federation of Thai Industries, said demand for Thai-made furniture in India gradually rises every year because products are cheaper than comparable designs from Western brands.
       Thai furniture will enjoy an even greater competitive advantage after the free trade area agreement between Thailand and India takes effect next year. Under the FTA, the import tariff on furniture to India will be gradually cut to between zero and 5%, down from 35-40% at present, he said.
       Currently, few Asian furniture brands are available in India, leaving Thai brands with much room and potential to expand their businesses.
       As well as in India, the company is conducting a feasibility study to open new outlets through the franchise system in the Middle East, said Ms Jarinthorn.
       At home, the company plans to spend 1 billion baht to open two more outlets in Bangkok next year in addition to the Bang Na branch, which is to be opened early next year under an earlier plan.
       Moreover, the company plans to renovate its existing stores and to adjust product displays.
       More designers will be hired to design home decorative items and furniture while the number of exclusive items available at its stores will be increased to 50% from 30% at present.These plans should help Index Living Mall differentiate itself from its rivals.
       The company expects its sales to reach 7.5 billion baht this year. Of the total, about 2 billion baht will come from exports. Sales of Index in the first 10 months grew by 8%, slightly below its earlier projection of 10%. Business from Dubai has provided much of the company's sales.