The first Index Living Mall in India, covering more than 6,000 square metres, will open next year.

Index Living Mall managing director Kijja Pattamasattayasonthi said India was a developing country with high potential as a market for furniture and home living products.

"There are plans to open 300 new shopping centres in India over the next three years," he said. "The price of land there has increased by 100 per cent over the past two years.

"The computer software industry has enjoyed a boom in India and this has led to higher incomes for many people, who are well-educated."

Bombay has a population of more than 10 million and there are no big retail complexes for home furnishing products, he said.

He expects Indian import duties for furnishing goods - currently between 30 per cent and 35 per cent - will be reduced gradually to less than 10 per cent over the next five years.

"The 10-year licence for the local investor in India (who asked not to be named) will guarantee our successful entry to the market. Our licensee is a successful company that is listed on India's stock market in the industrial and retail sectors," Kijja said, adding that he expects the Indian partner will open six or seven Index Living Mall complexes over the next five years.

"Under the licence agreement, the local investor will be responsible for all investment, while we will help with store design, decoration, product layout and staff training. We will also supply all home living merchandises to their store, which will take between seven and 10 years to break even," he said.

Kijja said India would be the second overseas country to open an Index Living Mall complex, following Indonesia, where the company provided a licence to a local operator two years ago. The Indonesian operation plans to open eight more Index Living Mall outlets with retail space ranging from 3,000sqm to 10,000sqm.

As well as the large-scale retail complex concept, the company has granted licences to local investors in more than 10 countries to open small furniture shops named Index Furniture Centres, with retail space ranging between 200sqm and 300sqm. These are now operating in the Philippines, Malta, Lebanon, Bangladesh, Maldives, Sri Lanka, Cambodia, Kenya, Burma, Vietnam and Iran.

Kijja said Index Living Mall would like to grant licences for large-scale complexes in the Middle East, and particularly in Dubai.

"Dubai is a potential location for a large-scale home furnishing store because it has benefited from being a tax-free port and the commercial hub of the Middle East," he said.

In Thailand, Index Living Mall, which is a subsidiary of Index Interfern Co Ltd, opened its 13th large-scale outlet on Saturday even though the company has been operating for only three years. The new store, in Chiang Mai, has retail space of 20,000sqm and represents an investment of more than Bt800 million.

"We've seen great business potential in Chiang Mai, in both the short and long term. The province has experienced growth in many sectors, including real estate, tourism and related businesses," Kijja said.

The company will begin construction of its 14th Index Living Mall - in Phitsanulok - this week. It will have retail space of more than 10,000sqm and will cost Bt400 million. First work will also begin on the 15th Index Living Mall, in Udon Thani, in the next two months. It will require investment of about Bt500 million.

Both the Phitsanulok and Udon Thani complexes will open next year.

Index Living Mall Co Ltd is also planning to invest Bt1.5 billion in a new 20,000sqm office tower and showroom on Rama II Road in Bangkok next year.

Kwanchai Rungfapaisarn

The Nation

CHIANG MAI