VLCC to expand in Gulf countries

VLCC Healthcare Ltd is set to expand into Gulf countries. The company has decided to open 30 centres in Oman, Bahrain, Kuwait, Dubai, Sharja and Abudhabi in the next two years. It has seven centres in the UAE now.

Chief Financial Officer Narinder Kumar said the experiment with the UAE had been quite encouraging, because of which the company framed its aggressive plans for Gulf countries.

According to Kumar, about 70 per cent of the women there were obese, which was why it was propitious for VLCC to expand there.

"Pakistan is, again, a very big market and we are keen to go there but due to legal hassles, it might take some while," he added. Meanwhile, Sri Lanka will be the thrust area for the Asian countries this year.

The company would have local partners to adhere to the guidelines of the ministry of external affairs and the partners would get an annual consultancy fee for rendering support in local matters, he said. The company will hire local talent in the overseas market but the supervisory staff would be picked up from Indian centres.

VLCC had recently signed an agreement with the Madhya Pradesh government to run courses in beauty and nutritional training. This will be a public-private partnership where the state government will provide the necessary infrastructure for the economically weaker sections of the society.

"The model will shortly be replicated for Punjab and discussions are on with officials to prepare the final framework of the agreement," said Kumar.

The company plans to raise money from private equity funds in two phases. It will raise $12 million in 2007 and $50 million in the next two years until the company goes public in 2010 to fund its expansion plans.