VLCC zeroes in on three mid-sized firms for acquisition
Press Trust of India / Mumbai Dec 30, 2009, 12:05 IST
Wellness firm Vandana Luthra Curls and Curves (VLCC) plans to invest Rs 400 crore to fund expansion activities and acquisition of three small-sized companies, a top company official said.
"We are investing Rs 400 crore for expanding our operations and for some major acquisitions. Nearly Rs 100 crore will be used to fund the two acquisitions," VLCC's managing director Sandeep Ahuja told PTI.
The company has identified two medium-sized wellness chains in the Middle-East and the US respectively and one in South India as potential acquisition targets, Ahuja said, without divulging further details about the target firms.
It has also identified a mid-sized beauty firm in South India for possible take over. This would be funded by a mixture of internal accruals and debt, Ahuja said.
VLCC, which is set to hit the capital market with its Rs 1,000 crore IPO over the next one and half years, plans to launch Nutri-Diet Clinics (NDCs), open 75 new centres and launch its new product range, as part of its medium-term expansion process, Ahuja said.
"We are opening 100 NDCs across the country, that will have a total investment of Rs 25 crore, the first of which will be launched in New Delhi in January 18," he said, adding that the investment per clinic would be around Rs 25 lakh.
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