Growing consumerism attracting major lifestyle firms to India

Bangalore, Jan 14: Blooming consumerism in India, spearheaded by the youthful population, is bringing in its wake famed international lifestyle companies, which want to cash in on the booming economy.

The latest in the list to hit the Indian retail segment is the topnotcher in hairstyle products -- Tony and Guy from London, which is partnering with Brushman (India) to float a joint venture and share the pie.

Targeting the rich and the celebrity of the country in thriving Delhi, Mumbai and Bangalore, Tony and Guy, an established hairdressing brand in the world, aimed at selling its hair care products, besides setting up its own salons across the country.

Tony and Guy Business Development Manager Gregory De Book told UNI here that the potential was enormous and the company had come to India at an appropriate time when retailism was emerging vibrantly.

He said that during the last three years, retail sector had been booming in India and Tony and Guy did not want to miss out the excitement.

Stating that the joint venture with Tony and Guy would be a crowning glory for Brushman, its Managing Director Kapil Kumar said the collaborator's decision to come to India meant consumerism had reached a pinnacle. The nitty gritty of the tie up was being worked out and it would involve an investment of around Rs 40 crore, he said.

Besides haircare products and salons, numbering 30 in select cities, the joint venture would also set up academies to train hair dressers. Four such academies would be set up in the country initially, he added.
Tony and Guy generated a revenue of 175 million pounds from its hairdressing salons alone, Mr De Book said, adding that the revenue through haircare products was around 12 million pounds. Mr Kumar said the hair care business in the country was worth Rs 400 crore. He said that apart from investment in Tony and Guy joint venture, the company was also planning an expansion drive for Rs 50 crore. It was contemplating various means to raise the required resource, including IPO and Foreign Currency Convertible Bonds. Over the next few years, the company revenue was expected to touch around Rs 350 crore from the current level of around Rs 55 crore because of the new initiatives, he added.

From a mere paint brush company, Brushman had diversified its operations in 1996 to distribute hair brushes of Denmen International UK. For the first time outside the UK, Denman would have a manufacturing base here in India. An integrated paint brush, hair brush and household brush manufacturing unit was being set up at a cost of Rs 20 crore and it would start operations from next month. Brushman had also entered into a strategic tie up with Keune Hir Cosmetics, a Dutch company, in 2001, besides other international brands for various cosmetics.

UNI