VLCC eyes 50 percent business from products in 3 yrs
Mumbai: Beauty and wellness firm VLCC is betting big on its products division and expects it to contribute around half of its turnover in the next three years from 35 per cent at present.
"The product business is certainly one of our growth drivers. We expect an equal share of product business in the next three years," VLCC Healthcare Director Sandeep Ahuja told.
The firm offers weight loss solutions and beauty treatments. It also retails its products across 1,10,000 outlets.
The company has been clipping at a CAGR of 16-20 per cent for the last five years and is eyeing a turnover of Rs 1,000 crore this fiscal.
"We will achieve a turnover of Rs 1,000 crore this year, with 65 per cent from services and 35 per cent from products," he said.
Its portfolio includes skin care, sun protection, hair care, lip balms and slimming products, among others.
Non-traditional channels like e-commerce and teleshopping contribute about 10 per cent of sales, with e-commerce constituting a major bulk.
The Delhi-based company has earmarked Rs 70-80 crore for marketing spends this year.
VLCC currently operates 200 centres in India and will scale up by 20-25 per cent every year, he said.
It also has a presence in 13 other countries and operates 50 centres in the overseas market. Ahuja said the company will be adding four to five new centres every year, starting from the calendar year 2018.
Global market contributes around 30 per cent of the company's total revenues.
It also plans to get listed on the bourses after having abandoned its plans last year due to poor market sentiment.
"IPO (initial public offering) is still an item on agenda and we will be looking at that route. When we last filed our DRHP (draft red herring prospectus) it was around Rs 600 crore and I don't think anything less than that will happen but I am not sure about the timing," Ahuja said.