Jyothy Laboratories is looking for a strategic investor in its laundry business, which is operated through its 75-per cent-owned subsidiary Jyothy Fabricare Services.

The deal, which might happen in the next financial year, will enable the company to take its total store count to 600 across 30 cities in three years involving a capex of about ₹75 crore.

‘Inorganic growth’

Currently, Jyothy Fabricare Services operates 140 stores in Bengaluru (70 stores), Delhi, Mumbai, Pune and Chennai serving a customer base of over four lakh, and washing 30,000 garments daily. The company has a turnover of ₹40 crore and expects to be EBIDTA positive by September 2018.

“On pan India basis, our laundry business has the potential to generate revenues of ₹300 crore and operating profit of ₹60 crore. This will need capex of ₹75 crore. Jyothy Laboratories has spent ₹150 crore on the laundry business so far,”said Ullas Kamath, Joint Managing Director, Jyothy Laboratories.

Jyothy Laboratories is open to inorganic growth opportunities especially in categories like personal care and haircare. In FY19, the company is looking at sales and net profit growth of 15 per cent and 25 per cent respectively.