Indian business historian and author of “Business Maharajas” Gita Piramal, has sold off her 95 percent stake in office furniture company BP Ergo to the American company, HNI Corp., according to The Economic Times.
This will help the world’s second largest office furniture maker provide furniture to almost 200,000 people in India’s rising market.
BP Ergo started as a tiny manufacturing unit in VIP Industries’ factory in 1992, and became one of India’s largest office furniture makers.
"By attracting investment from HNI, BP Ergo has broken the myth of Indian manufacturing losing its global edge," Gita Piramal told The Economic Times.
Iowa-based HNI has decided to go the way of direct-selling and break off their dependence on facilities.
"We entered the Chinese market in 2006 through the acquisition of a Hong Kong-based company,” Marco Molinari, executive vice-president of HNI Corporation told the news source. “In the last six years, we have been bolstering our presence in China. India presents a similar picture in terms of size and opportunity," Unlike most national corporations, HNI has entered the Asian market before trying their stake in Europe and Latin America.
Gita Piramal, whose book 'Business Maharajas' gave a deep insight into the lives and times of Indian businesspersons, plans to write a new book on entrepreneurs. "I also want to do research on behavioral economics," said Dr Piramal.
Now that HNI has entered India, we probably will see a change in the domestic office furniture market. Companies are trending toward the use of technology in their office products, including voice, data and power.
"The office furniture market is just 22-23% (of the total furniture market). This is poised to grow in a major way," said Gita Piramal.
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