CavinKare reveals expansion plans for pan-India business

Consumer goods manufacturing company CavinKare is planning to expand its business in the pan-India region in the next two years.

The firm has decided to divest about 10% of its stake worth about INR3.5bn ($63.69m) to support its capacity expansion plans.

CavinKare is also planning to expand its salon business in the region by tripling the number of outlets to 350 from the current 110, under the brands – Green Trends and Limelite.

The firm, which currently operates its salon business through Trends in Vogue ( TIV) model, is planning to invest about INR80m ($1.4m) for setting up its own parlours through a combination of franchise models and own outlets.

CavinKare currently has 103 Green Trends and seven Limelite salons, majority of them located in the South Indian region.

The company is also mulling to open the Lime Lite range of salons in metros, and Green Trends in other areas.

CavinKare CMD C K Ranganathan said the company is exploring a capacity expansion plan at its existing facility, which would require a ‘three digit’ investment.

"Our beauty salon chains, have made an estimated revenue of Rs 50 crore this financial year", Ranganathan added.

The Indian beauty services market in is valued at Rs 70bn ($1.27bn) annually and growing at a rate of 20%, while CavinKare’s turnover from beauty salon business for this financial year is estimated at INR500m ($9.09m).