| The company, which has been recording double digit growth for some years now, is negotiating with some overseas entities for private placement. Narinder Kumar, chief financial officer (CFO), said the placement will precede the IPO. |
| "VLCC hopes to conclude the arrangement soon. The IPO will be not more than Rs 100 crore," Kumar said. |
| VLCC has 62 slimming and fitness centres in 35 cities. However, only a small chunk of them is owned by the company, while the rest is by channel partners. VLCC now wants to set up its own shops. |
| VLCC has so long enjoyed a pay back period not more than 24 month with internal rate of return (IRR) over 40 per cent. Profit would be faster for the company if VLCC sets up centres by itself. It would not like to wait for others to expand its business either, Kumar explained. |
| The company's model is to share risk to some extent with partners. Sites were owned by or leased to VLCC, while equipment and interiors were funded by the partner. |
| VLCC group has a combined turnover of Rs 100 crore with VLCC Personal Care Ltd marketing herbal beauty care products contributing 10 per cent of turnover. |
| The company is aiming at sales of Rs 1,000 crore in 10 years. |
| Kumar predicted the product business will be contributing half of company's revenues by then. Products were a rapidly growing segment and had been well received in the market. To boost product sales growth, VLCC is planning to set up 15 exclusive shops in India. |
| VLCC is also looking at beauty and slimming centres in west and south east Asia. The company hopes to add 25 new centres in India in 2004. |
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