Jyothy Fabricare wraps up acquisition of Delhi-based laundry chain

In a move that will see it expand its footprint beyond Bangalore, Jyothy Fabricare Services (JFSL), a subsidiary of Jyothy Labatories (JLL), has acquired a Delhi-based laundry chain Diamond Fabcare for an undisclosed amount. Analysts peg the deal at Rs 50 crore.

The current buy will add 62 outlets to JFSL’s number of 30. JFSL will fund the acquisition through the Rs 100 crore raised by offloading 26 per cent stake to the private equity arm of financial major IL&FS recently. The stake buy valued JFSL at close to Rs 400 crore.

JFSL is looking to wrap up one more acquisition, which will be in Mumbai, before proceeding to set up outlets in Pune, Hyderabad and Chennai.

The firm is eying a turnover of Rs 300 crore in five years - a jump of 30 times over its current turnover. The total number of outlets by then will be 500.

The model to be adopted in each city where it goes will be that of hub and spoke - a central unit for cleaning garments linked to collection and delivery centres.

JFSL also proposes to use fabric care products manufactured by Jyothy rather than using imported products as it now does to bring down costs.

Daimond Fabcare has a presence in both the institutional and retail segments with Wardrobe being its most popular brand.

JFSL, which was set up in November 2009 with an initial capital expenditure of Rs 35 crore, is into both premium and affordable laundry services under brands Snoways, FabricSpa and Busy Easy among others.