Consumerism attracting major lifestyle firms to India
Bangalore, Jan 14: Blooming consumerism in India, spearheaded bythe youthful population, is bringing in its wake famed internationallifestyle companies, which want to cash in on the booming economy.
The latest in the list to hit the Indian retail segment is thetopnotcher in hairstyle products -- Tony and Guy from London, which ispartnering with Brushman (India) to float a joint venture and share thepie.
Targeting the rich and the celebrity of the country in thrivingDelhi, Mumbai and Bangalore cities, Tony and Guy, an establishedhairdressing brand in the world, aimed at selling its hair careproducts, besides setting up its own salons across the country.
Tony and Guy Business Development Manager Gregory De Book told UNIhere that the potential was enormous and the company had come to Indiaat an appropriate time when retailism was emerging vibrantly.
He said that during the last three years, retail sector had beenbooming in India and Tony and Guy did not want to miss out theexcitement.
Stating that the joint venture with Tony and Guy would be acrowning glory for Brushman, its Managing Director Kapil Kumar said thecollaborator's decision to come to India meant consumerism had reacheda pinnacle. The nitty gritty of the tie up was being worked out and itwould involve an investment of around Rs 40 crore.
Besides haircare products and salons, numbering 30 in selectcities, the joint venture would also set up academies to train hairdressers. Four such academies would be set up in the country initially,he added.
Tony and Guy generated a revenue of 175 million pounds from itshairdressing salons alone, Mr De Book said, adding that the revenuethrough haircare products was around 12 million pounds. Mr Kumar saidthe hair care business in the country was worth Rs 400 crore. He saidthat apart from investment in Tony and Guy joint venture, the companywas also planning an expansion drive for Rs 50 crore. It wascontemplating various means to raise the required resource, includingIPO and Foreign Currency Convertible Bonds. Over the next few years,the company revenue was expected to touch around Rs 350 crore from thecurrent level of around Rs 55 crore because of the new initiatives, headded.
From a mere paint brush company, Brushman had diversified itsoperations in 1996 to distribute hair brushes of Denmen InternationalUK. For the first time outside the UK, Denman would have amanufacturing base here in India. An integrated paint brush, hair brushand household brush manufacturing unit was being set up at a cost of Rs20 crore and it would start operations from next month. Brushman hadalso entered into a strategic tie up with Keune Hir Cosmetics, a Dutchcompany, in 2001, besides other international brands for variouscosmetics.