JCB Salon in talks with PEs to raise USD 10 mn
ASK Group chairman Asit Koteha backed salon and spa chain Jean-Claude Biguine India has initiated talks with private equity firms for a possible placement in the master franchise. Operating under the banner JCB Salon Pvt Ltd (JSPL), the master franchise plans to raise USD 10 mn to meet its expansion plans in India.
Headquartered in Paris, Jean-Claude Biguine entered the Indian market through a master franchise arrangement opening the first outlet in Bangalore sometime in 2007. Since then, JSPL has been working on putting together a core management team including the likes of ASK Group chairman Asit Koteha as angel investor and Pradeep Guha as strategic advisor to the company. The company in the beginning of 2009 raised USD 2 mn and has now embarked on its second round of fund raising.
Dharmendra Manwani, CEO of JCB Salon Pvt Ltd (JSPL), said, “The additional funds to be raised will be part of our growth capital requirement. We plan to have 30 stores in another two years.”
Growing annually at 25%, the Indian wellness and health industry is currently estimated at approximately Rs 1,500 crore with the potential to reach Rs 8,000 crore by 2012. JSPL currently has two outlets, one each in Bangalore and Mumbai. It plans to open another three salons in Mumbai by the end of this year. To be operational by September 2009, JSPL’s second outlet will come up in the Palladium Mall at Phoenix Mills. The company is negotiating currently for two more outlets in the Indian financial capital.
Amongst its expansion strategy in India is an arrangement with the Aditya Birla Group’s super premium lifestyle retailing chain The Collective by Madura Garments Lifestyle Retail Company (MGLRC). The salon chain will continue this association besides exploring with a few others including hospitality companies with landmark properties in the country.
Spread across 1,200-1,500 sq ft, the investment per outlet comes to around 60-80 lakh with the breakeven time of 120 days. While the target audience is 16-60 year old beauty conscious lifestyle customer segment, its current sweet spot in India includes those in the 20-50 age group. Availing between 1.5 to 2 services and more, the average ticket size at the salon and spa chain is pegged at around Rs 2,000.
Established in 1982 and headquartered in France, Jean-Claude Biguine-House Of Beauty is 150 million euros global chain of salons and spas. JCB currently operates across 17 countries with 350 salons and spas.