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PNN
New Delhi [India], October 20: A few years ago, a dealer in eastern India approached a hardware manufacturer with a requirement for three products. The manufacturer could supply only two, forcing the dealer to source the third from another supplier. This meant managing two invoices, two deliveries and two separate points of contact in case of any issue. The dealer was not being difficult; this was simply how Indias architectural hardware trade had traditionally operated. For decades, the fragmented nature of the industry was accepted as a normal part of doing business. However, this presents a significant opportunity for change. Indias market for hinges, bolts, latches and door fittings is growing, estimated at approximately US$3.96 billion in 2026 by Mordor Intelligence and projected to reach US$6.31 billion by 2031. Much of the market continues to be served by small manufacturers specialising in a limited number of products and catering to specific regions. While these businesses are efficient within their niches, buyers are often left to coordinate multiple suppliers. For a builder fitting out hundreds of apartments, managing procurement across several hardware vendors adds unnecessary complexity. Recognising this gap, the company adopted a strategy focused on product range rather than concentrating on volume in a single category. It developed nine product categories, with more than 150 specifications, sizes and finishes within each, manufactured at its facility in Shapar and marketed under its own brand rather than through job-work arrangements for other labels. This approach, however, comes with its own challenges. Job work can generate relatively immediate revenue, whereas building a brand requires sustained investment in marketing, product development and inventory. Instead of focusing on a few fast-moving products, the company must maintain stock across a wider assortment while also managing returns and distribution requirements. Working capital remains a critical consideration. The business typically maintains around one-and-a-half to two months of inventory and extends credit of up to 45 days to distributors. Over the last three years, its EBITDA margin has remained largely within the 1516% range, standing at 14.25% in FY26, while revenue grew 72% to 70.09 crore. Although a broader product range does not necessarily translate into higher profitability per rupee, it can strengthen customer relationships and make the company more difficult to replace. Customers accustomed to sourcing a comprehensive range from one supplier would need to return to coordinating with multiple vendors if they switched. Recent regulatory developments are also reshaping the industry. Since 1 July 2025, hinges manufactured, sold, imported or stocked in India have been subject to the applicable BIS marking requirements under a Quality Control Order issued by the Department for Promotion of Industry and Internal Trade (DPIIT) in March 2025. The government has also introduced a minimum import price for certain imported cabinet hinges. While such measures can increase compliance costs, they may also strengthen the importance of product testing, documentation and traceability. Manufacturers that have already invested in quality systems could be better positioned as compliance becomes an increasingly important part of the market. Regulatory compliance presents challenges for smaller manufacturers, who must invest in testing, certification and documentation. Improved access to working capital and compliance support from banks and industry associations will be crucial to help these businesses meet quality standards and sustain growth. This is a broader challenge facing manufacturers across Indias architectural hardware industry. The opportunity often lies in fulfilling existing demand rather than creating an entirely new market. The company currently has orders exceeding its manufacturing capacity, prompting investment in new machinery and plans to expand vertically at its existing 12,632-square-foot facility. The key challenge is financing the period between purchasing raw materials, manufacturing products, expanding the product range and receiving payments from customers. India has a strong metalworking base, particularly in Rajkot, but the opportunity lies in building trusted brands with a comprehensive product range. As the hardware industry evolves, manufacturers focusing on quality, product diversity, efficient distribution and working-capital management will be better positioned to strengthen customer relationships and compete beyond price alone. (ADVERTORIAL DISCLAIMER: The above press release has been provided by PNN. ANI will not be responsible in any way for the content of the same.)
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