DIY pioneer in India

Just how successfully this warehouse-format store is working out is proved by the first financial statement issued in March. Break-even has already been achieved, something that was not originally scheduled until the third year of operation. Nothing now stands in the way of further expanding the concept.
The Arcus duo: Director I.S. Narula (left) and CEO Aravind Nagarajan.
The first outlet is situated at Gurgaon near New Delhi. It offers building materials and DIY products for both consumers and tradesmen on an area of almost 3 000 m2. Arcus, headed by director I.S. Narula, has rather the appearance of an Indian version of Home Depot. In the absence of any role models for such a venture in India, Narula and his team have had to find their own way, right from designing the merchandising mix through to relationships with suppliers as well as customer fulfilment parameters.
Management decided in favour of adopting a warehouse concept, a no-frills ambience where the only concession to comfort is the provision of aircondition-ing. Though there is also a play area for children, and a café is soon to be completed. The company’s most vital pillar is customer support and service. This includes detailed information about products, as well as their usage and maintenance. Pattern options can be selected on a computer, and there is a planning calendar for the construction process as well. Arcus facilitates the training of craftsmen by manufacturers and maintains a database of these trained tradesmen for its customers.
No-frills merchandising displays in the warehouse style.
The product range includes everything needed for building or renovating a home. It covers cement, bricks and sand, which can all be ordered at a booking counter, whereas the rest of the products are displayed and stocked in the store. These include bathroom and kitchen fittings, electricals, lighting, paint, floor coverings, wallpaper, flat-pack furniture and impulse buys such as extension cords and plugs. Later carpets, curtains and furnishing fabrics might be added, according to Narula. The company does not intend to develop private-label products at first, preferring instead to ensure that there is a choice of known brands in each product category on the shelves.
This marketing concept, which is new to India, is developing successfully: the company has announced that breakeven was reached in the eleventh month of operation. Sales for the first financial year ending March 2002 are likely to reach 180…