Project report for Furniture Unit

Introduction

The project report for furniture shop is as follows:

The    furniture    sector    in    India    makes    a    marginal contribution    to    the    Gross    Domestic    Product    (GDP), representing about 0.5 per cent of the total GDP.  The major part  of  this  industry,  approximately  85  per  cent  is  in  the unorganised sector. Popularity of traditional furniture has strengthened the demand for wood in the manufacturing of furniture in India. Over the past few years, the utilization of wooden goods in home has increased as people have started using wood for furnishing cupboards, decorating and for other purposes. Apart from this, the demand for engineered wood furniture is rising in metro cities such as Delhi, Mumbai, Bangalore and other major cities. The reason behind this is the rising popularity of ready to assemble home furniture in these cities. The  global  furniture  market  can  be  broadly  categorised into  four  categories  -  domestic  furniture,  office/corporate furniture,   hotel   furniture   and   furniture   parts.   Globally, domestic   furniture   accounts   for   65   per   cent   of   the production value, whilst corporate/office furniture represents  15  per  cent,  hotel  furniture  15  per  cent  and furniture parts 5 per cent.  According   to   a   World   Bank   study,   the   organised furniture industry is expected to grow by 20 per cent every year. A large part of this growth is expected to come from the  rapidly  growing  consumer  markets  of  Asia,  implying significant   potential   for   growth   in   the   Indian   furniture sector.  the  Indian  furniture  market  is  estimated  to  be worth US$ 7,922 million. Of this, wooden furniture accounts for  US$  1,358  million.  About  11  per  cent  (US$  152  million) of  this  (wooden  furniture)  is  imported  and  imports  are growing  at  50  to  60  per  cent  every  year.

Market potential & Strategy

 The Indian furniture market is estimated to be worth US$ 7,922 million. Of this, wooden furniture accounts for  US$  1,358  million.  About  11 percent (US$  152  million) of this (wooden  furniture)  is  imported  and  imports  are growing  at  50  to  60  per  cent  every  year. India  was  the largest furniture importer in the world .A total of 10,  476  importers  shipped  furniture  to  India  during  this period,  mainly  from  Italy,  Germany,  Spain,  China,  Korea, Malaysia, Indonesia, Philippines and Japan.The  range  of  indigenous  furniture  available  in  India, includes  both  residential  and  contract  system  furniture. Manufacturers   in   India   usually   use   a   three-tier   selling and  distribution  structure,  comprising  of  the  distributor, wholesaler and retailer. The market is mainly concentrated in A, B and C category cities (the top 589 cities). A and B type cities  together  constitute  33  per  cent  of  the  total  market. With  a  healthy  economy  and  increased  household  and institutional spending, the market is growing steadily. s  with  the  global  market,  home  furniture  is  the  largest segment    in    the    Indian    furniture    market,    accounting for  about  65  per  cent  of  furniture  sales.  This  is  followed by,  the  office  furniture  segment  with  a  20  per  cent  share and  the  contract  segment,  accounting  for  the  remaining 15 per cent.The  Indian  furniture  industry  covers  the  entire  gamut  of activities,  from  sourcing,  manufacturing  and  distribution, to sales and after sales.