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Salon companies are gearing up to garner a bigger share of the FMCG pie. B:Blunt and Richfeel, for instance, are looking to raise fresh funds for building and distributing their brands. Chennai-based hair and beauty salon Naturals is planning a series of products under its own brand for which it is scouting for private equity funds.
Having raised ₹18 crore from Chennai-based Fulcrum and Brand Capital, Richfeel is now looking to mobilise ₹50-75 crore as it enters the FMCG category with products such as sulphate-free shampoos, anti-acne soap and face-washes with calendula extracts.
“We are planning a cash deal either with a new set of investors or the existing ones to raise about ₹75 crore next year. This should not be a challenge as we already have a sales turnover of ₹95 crore today. With our FMCG foray, we will have to build distribution and reach out to 500 modern trade outlets,” said Anurag Kedia, Chief Development Officer, Richfeel Health & Beauty.
Naturals is also extending its presence in the non-southern and international markets from 400 outlets to 3,000 by 2018. The company plans to use its salons also as a distribution channel for its shampoos and creams.
Says CK Kumaravel, CEO and Co-Founder, Naturals: “We have been approaching PE players and plan to hit the market by September to raise ₹120 crore. The mandate has been given to Veda Corporate Advisors.”
Mumbai-based B:Blunt, in which FMCG major Godrej Consumer Products has a 30 per cent stake, is to soon roll out its full range of hair-care products at 60-80 stores apart from its 20-odd salons across the country. “Most of the fresh investment will go towards advertising and scaling up distribution for the B:Blunt brand,” said Vivek Gambhir, Managing Director, Godrej Consumer Products.
Marico Kaya Enterprises, which runs the Kaya skincare salons, has spun off its FMCG business under its Kaya Skincare bars. The company is planning a capex of ₹3 crore this year. “We plan to add 15-20 Kaya skin bars every year for the product retail segment. New-age players in the health and beauty space will see more investors coming in and today almost 20 per cent of the sales are from products at our salons,” observes S Subramanian, CEO, Marico Kaya.
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