Chennai, July 2: Indian beauty salon chain Naturals will soon open outlets in the US and the Middle East, a top company official said.
In India, the chain will increase the number of outlets from the current 480 to 3,000 by the end of 2018, the official said.
The company is also planning to launch its brand of ayurveda-based beauty products and raise Rs.100 crore through private equity by diluting around 20 percent, he said.
"We will be opening our Naturals outlet in Dubai this September. We plan to have six outlets there. We have entered into a joint venture there, in which we hold 25 percent stake. The joint venture company will be the master franchisee for the UAE, Qatar and others," C.K. Kumaravel, founder and CEO, Groom India Salon and Spa, told IANS.
Kareena Kapoor as brand ambassador for Naturals has resulted in benefits.
Groom India Salon owns the Naturals brand of beauty salons across the country.
Last fiscal, the Naturals chain of stores earned a total revenue of around Rs.330 crore and is logging good growth.
Kumaravel said signing up Bollywood actor Kareena Kapoor as brand ambassador for Naturals has resulted in intangible benefits for the brand.
"Not only our potential clients look at celebrity brand ambassadors but also potential franchises look at them. Celebrity brand ambassadors provide the increased investment comfort for franchises regarding their return on investment," Kumaravel said.
According to him, several investors took up Naturals franchise after the company signed up with Kareena.
He said Kareena is the brand ambassador for Naturals brand and not for any other product sold or to be sold by the outlet, and hence there would be no conflict of interest.
Groom India operates four beauty salon formats - Naturals unisex salons, Naturals Lounge (luxurious studio and spa, salon), Naturals W (women's only salon) and Page 3 (premium luxury salon and makeover studio).
"In the case of rented outlet, a tripartite agreement is drawn wherein Groom India and the franchisee will be the second and third parties. In case, the franchisee decides to exit the business, the premises will be with us," Kumaravel said.