VLCC plans Rs 4,000-mn expansion

Mumbai/Ahmedabad: VLCC Healthcare, which is into health, beauty and fitness, plans a capex of Rs 400 crore over the next two years to expand its presence across its services, personal care and education verticals in India and abroad.

The company has also decided to come out with an initial public offering (IPO) around July 2009, for which it is working on the issue size.

“We are looking at expansion both in India and abroad. We are also exploring the concept of residential spas, for which we are looking at acquiring land on the Mumbai-Pune Highway and Delhi-Jaipur Highway. The residential spas will be a one-stop centre for weight loss, passive exercising and other wellness programmes. We may also take it to Dubai within a year,' said Vandana Luthra, founder and mentor of the VLCC Group. The Rs 400-crore expansion would be funded by a private investor and through internal accruals.

The company has 126 VLCC centres in the country, which will be ramped up to 300 in the next year. Of these, 100 would be through the franchisee route mainly for the tier three cities.

Gujarat will see an increase from 3 VLCC centres to nine in the coming year and these new centres will be set up in Rajkot, Surat and Vadodara, along with other locations.