Kaya focuses on overseas expansion; eyes break-even

FMCG major Marico's beauty and wellness arm, Kaya, that incurred losses of Rs 5.3 crore last fiscal from its domestic business, expects to break-even in the current financial year, a top company official said today.

To achieve profits, the arm, which runs the wellness chain, Kaya Skin Clinic, is looking at re-jigging its domestic business while expanding overseas with eight more outlets this fiscal.

"We posted losses last fiscal but expect to break-even in FY11. We have no plans of opening any outlet in India this year, but will consolidate the business by increasing visibility, right sizing, relocating and adding new services. But, we are definitely not downsizing," Kaya Chief Executive Ajay Pahwa told PTI here.

The company closed one clinic this year and relocated a few for better visibility as a strategic move, he said, adding a major problem now was the spurt in rentals post the economic downturn.

The chain's overall turnover stood at Rs 250 crore in the last financial year with India contributing only half to its revenue even though it had 81 clinics across 27 cities. The remaining 20 are located overseas.

"Kaya is doing quite well abroad with the Middle-East contributing the maximum to the business. We plan to open eight outlets this year in the Middle-East alone, where we have 13 clinics. The investment for this would be around Rs 12 crore," Pahwa said.

The wholly-owned subsidiary of Marico, which recently completed the acquisition of the aesthetics business of the Singapore-based Derma Rx Asia Pacific (Derma Rx), also plans to launch a full range of skin care solution from Derma Rx in India.

"We will be soon launching about 15 new products from Derma Rx in India. The products will take care of day-to-day skin problems and will be priced in the range of Rs 1,000- 3,000. In India, we have undertaken some mid-term corrections. We are also launching a pain-free hair-free laser therapy," Pahwa said.