Paramount Surgimed to divest 20% stake, import 'Axara'

New Delhi, Aug 19 (UNI) Paramount Surgimed Ltd has said it will soon dilute 20 per cent of its promoters holding from the current 100 per cent in the retail arm of the business and raise upto Rs 50 crore through private equity placement.

Paramount, which is in the business of importing and distribution of beauty and health care products like Rica, Echosline, Conair&Vidal sasoon and is the master franchisee of Singapore-based Osim International Ltd, says it looks to raise debt and equity to fund its expansion needs. The company is looking for a net block of Rs 10 crore in equity.

''We have decided to import the label Axara to India from Paris and envision a pan India growth for the brand,'' Paramount Managing Director Shaily Grover said.

The company will set up its first Axara store in Delhi in October and then expand to another store in Delhi and Chandigarh in the early 2008. It plans to have 20 stores in the two-year time.

''To fund this expansion the company will invest Rs 15-20 crore in the next two years with a couple of crores investment initially,'' said Mr Grover.

Fuelled by the high-end fashion, design and quality at affordable price, the company has set an ambitious target of Rs 20 crore as turnover in the next year for Axara and intends to add 100 per cent to its top-line and bottom-line.

However, the ever spiralling property prices might be a dampener for Axara as it will have to dig deeper into its pockets to pay rent for its store.

''The property prices are going up, but then it's a part of the economy and its more important to have a level playing field. If the floor prices go up the customer will have to bear the burnt of it in the form of higher prices of products,'' Mr Grover added.

Paramount Surgimed Ltd is primarily involved in manufacturing a wide range of single use medical and surgical devices such as surgical blades, disposable scalpels, stitch cutters and skin graft blades.

UNI