VLCC to raise number of outlets to 300

VLCC plans to expand its slimming and beauty centres from the existing 100 to over 300 outlets by 2008-09. It also expects the revenue from these operations to go up from the current Rs 160 crore to Rs 350 crore in three years.

Yogesh Sethi, chief operating officer, VLCC Health Care, said that for the first time the company would also be exploring the franchisee model to expand into the B and C class towns.

"We are working on our franchisee model which we will launch in the next few months. While the expansion in the tier I towns will continue to be through company owned outlets, the new territories that we venture in will be largely through the franchisee route."

In terms of investment, the company will put in between Rs 60-65 crore to finance the expansion plans.

This would be in addition to the investments which will be made by the local business partners in the different cities.

Sethi said the company has already identified the first 55 towns where it would be setting up these outlets. This includes places like Udaipur, Rohtak and Simla.

Apart from these towns, the company will also expand its presence in cities like Mumbai, Chennai and Bangalore where it already has some centres.

The break up between the slimming and beauty treatments is 65-35, and Sethi said that it was gradually moving to a 60-40 ratio, Sethi said.

The company has recently opened two outlets in Dubai and intends to take this count up to 10 across other countries in the region. Some of the cities it will focus on are Sharjah, Kuwait and Bahrain.