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| Kaya to invest Rs 100 cr on expansion |
| Press Trust of India / New Delhi Nov 23, 2009, 20:28 IST |
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Beauty services provider Kaya Skin Clinic will invest Rs 100 crore in setting up around 75 outlets across the country as well as in Saudi Arabia over the next three years.
Kaya, a subsidiary of FMCG major Marico Industries, has total 100 outlets. It has 13 outlets in the Gulf countries.
"Going forward, in the next three years we plan to have upto 175 more outlets, including some in Saudi Arabia where it is foraying," Kaya Skin Clinic Chiefecutive Officer Rakesh Pandey told PTI.
For the next few years, the company would keep adding up to 20-25 more outlets per annum, all of them would be owned by it and each would cost around Rs 1-1.2 crore.
"We would invest around Rs 80-85 crore in expanding our operations in India while in Saudi Arabia, the cost of opening a outlet would be little more and in total, the company would invest more than Rs 100 crore in expansions," Pandey said.
Kaya Skin Clinic has reported a revenue of Rs 160 crore and a overall growth of 50 per cent in the last fiscal but in terms of net profit, it has reported losses.
"As we are expanding, more money is being infused on which wouldn't give returns immediately. Almost 60 per cent of our outlets are less than two years old, they would take time to get mature and after that returns on investment would come," he said.
Asked about the projected revenues, the company is expected to grew by 25-30 per cent per annum for the next few years and is likely to cross Rs 300 crore by 2013.
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