We are in a wait-and-watch mode: Vandana Luthra

Interview with founder of VLCC Health Care Ltd

VLCC Health Care, founded by Vandana Luthra in 1989, has come a long way since. The company soon goes public. Pravda Godbole spoke to Vandana Luthra about future plans, newer business segments and overseas markets.

What kind of investment is VLCC likely to make in the next financial year?
We are committed to invest over Rs 300 crore in the current and next fiscal. VLCC is currently present in 225 locations across 90 cities in eight countries. We plan to open 600 outlets in the next four years under different formats, including 51 outlets in overseas markets and 200 additional franchisee outlets. Currently, over 90 per cent of our outlets are company-owned and -managed.

When is VLCC likely to go public?
We are currently in a ‘wait and watch’ mode, and are looking at a window 18-24 months down the road.

What is your pan-India turnover?
While our agreement with investors precludes us from discussing this, it would not be inaccurate to say that VLCC is a ' 500-crore group.

How much of it is estimated to come from overseas operations?
Currently, our operations across 16 locations in seven countries (excluding India) contribute to nearly 25 per cent of group revenues.

What new business verticals does VLCC plan to get into?
Fresh from the successful launch earlier this month of two new formats, the VLCC Nutri-Diet Clinic and the VLCC Gymnasium & Salon, we are now readying to launch our first Day Medi-Spa. We will also be expanding our VLCC Day Spa, that we began rolling out last year, to other cities beyond Mumbai and Delhi/NCR.

What is the scale model VLCC is looking at?
VLCC currently has over 150 slimming, skin and hair services centres, apart from 45 VLCC Institutes and five Day Spas. We will be launching five more day spas this year and a day Medi-Spa. Our Residential Medi-Spa will be launched in the next 24 months or so. In addition, we will also be opening 25 new VLCC centres in India, Qatar, Kuwait, Sri Lanka and Bangladesh.

Are there any tie-ups on the cards to facilitate your above plans?
We already have an existing tie-up with the US-based Pritikin, who are leaders in the medi-spa domain.