- Country: India
- Industry: Medical, Health Care, Pharmaceutical
- Stage: Expansion/Growth
- Investment size: $80,000 / min. $60,000
We seek independent, private investors & businessmen to fund our Trichology Centers & Clinics in over 20 cities across India.
Each investment will be exclusively utilized for development. Settings up the Trichology Clinics & Investments are between Rs.30 lakhs to 40 lakhs based on locations.
Our goal is to have 100 Clinics by April 2013.
We plan to set up Trichology Clinics & hope to ramp up the numbers to 100 by April 2013.
Investors are guaranteed Fixed Returns of 24.57% per annum for a maximum term of 9 years. Pay-outs will be supported with complete financial data and may be made monthly.
Our company has been in business for 26 years since its inception (1986). Over 11 years, 51 Clinics have been established and many are generating monthly revenue in excess of Rs.20 lakhs. The Wellness industry is growing by 25~30% YoY with a market capitalization of Rs.7000/- crores!
Our investors have an opportunity to be part of a household brand associated with trust, competence, uniqueness, specialty treatments, and permanently lasting solutions to Hair, Scalp Care anomalies, ailments and concerns besides engage in simple diagnostic and investigative procedures to identify problem areas thereby ensuring correction.
Import Duty Rationalization for Hair Shampoos, Oils, Serums have been rationalized from a disturbing 120% (1990's) to a promising 30% (2011) which has made import, awareness, usage, demand for modern day brands and products all the more in the forefront of cutting edge Wellness, Healthcare, Beauty & Makeover platforms. The company is a major household name which is now taken a giant leap to carve a name for itself in this niche market!
Our company is a weaver of dreams and what we seek is a pure opportunity cost for the creation and erection of Trichology Clinics which have a break even period of 5-6 months. The company is a 26 year old concern but any concept of a new Clinic is in its infancy or seed capital stage but the assurance of brand name, legacy, patronage and trust of its over 100,000 customers.
Extra or surplus funding is desired because we ideally do not wish to borrow for the open market & expose our company to market risks associated with high interest rates, speculation, political uncertainty, financial governance and jurisprudence all of which contribute to a volatile and unstable situation. We also wish to maintain the sanctity and robustness of its profit model and ideally ensure the best for its investors going ahead.
Competition is from the Organized & Unorganized sector players which are dominated by some names like Dr. Batras; (Pan India); VCare Trichology (Southern India States); Dr.Kaalia's (Northern India States) and others come under the unorganized and private operators of Spa, Wellness & Skin Clinics which offer solutions for Hair anomalies. International Competitors like Advanced Hair Studio, Farrell's & Follea have yet to make a major mark in India as treatments and procedures are highly expensive staying beyond the reach of the common man.
Our company is ahead of its competitors in the sense that the brand is well established, is a household name, and has gravitated towards ensuring and riding the crest wave of its own Brand Salience. In a career spanning 26 years leaving aside 100,000 customers treated, the company is among the global top 3 in Hair & Scalp care besides also being the only player offering complete and thorough end to end solutions for any new customer. Very famous names, celebrities, personalities have walked through our corridors with concerns of falling hair balding, inconsistencies and have left very satisfied after completion of the procedures.
Such competitive advantage we feel is highly intrinsic and inherent to the culture and life of the company. With a major youth connect by means of Facebook, Twitter & YouTube ensuring the rapid proliferation of its theme and festival promotions for example Women’s Day, March 8th & Valentine's Day, 14th February 2012. The company's strength is in its fairly youthful workforce where the average age is 30 ensuring that there's in general good bonhomie and productivity. Another thing going for the company is regular advertising, brand building, social media marketing and events marketing. A lot of sustainable competitive advantage is expected to emerge by the leverage of the current business models across our Non-Surgical Clinics & Spa Rejuvenation Centres.
Rationale for the deal
We have an opportunity to go for a major transition and generation leap due to the emergence and explosion of Wellness, Health & Beauty as a major area of concern, therapeutic correction and opportunity for utilization of specialized manpower or labor and technologies both proprietary, reconfigured & adaptation for the local markets. However in this milieu, our company stands out for its usage of natural ingredients, products and supplements unlike most other competitors. With a Rs.7000 crore market capitalization in the Wellness and Healthcare market, there are a lots of pluses to exploit, gain and look forward to.
We operate on fairly high Gross Profit Margins (50%+) & EBIDTA's (20%+) besides the fact that all our Trichology Clinics break even with a 5-6 month time frame thereby ensuring that Clinic Profitability remains at the forefront of its efforts besides casting the net far and wide for a large client base. The Project Management teams also scout Pan-India far and wide for best locations and have also propounded the theory that the basic clinic models square footage area needs to be of 950+ square foot for more quantity of consulting rooms and technicians thereon. These consulting rooms are the engine rooms of the company per se and ensure that contemporary and modern day clinics have good fundamentals in place for higher revenues
We respect our competitors’ intentions but in the field of Trichology we outperform them on several platforms namely:
• Well known & Household Brand name creating an instant connect in both rural and urban areas due to extensive advertising and mass media campaigns
• Huge customer base ensures that stronger and effective word of mouth, referrals and in most cases specific recommendations. Media journalists also spread the word of particular treatments once they subject themselves to a facial, manicure/pedicure or spa massage which creates hype and aids in brand recall.
• Our area coverage by with over 51 clinics serves to emphasize more of the customer self-belief and assurance of a hand-held relationship to clear the final frontier. Strategic efforts like Consumer Connect efforts serve to build trust much like the epitome of a home grown brand.
Such successes aren’t easy to replicate and reproduce easily as are combination of outcomes which probably are more of a mammoth effort for competition.
Use of financing
Financial Investment is needed for taking care of Clinic Infrastructure namely to cover costs of location (leasing, deposits), clinic branding (design, brand fundamentals), infrastructure (Consulting Rooms, Stock Area, Labor), Personnel & Staff Welfare, Compensation & Promotion Activities. It must be noted that the New Clinics will have a break-even of 5-6M, so outreach efforts have to be made to generate interest, awareness and build the customer centric approaches to the fore like Market & Consumer Centric Research.
A Planned approach to the overall goal of setting up and ensuring the 100+ Clinics are set up by April 2013. Commercial & External Commercial Borrowing isn't the best option for the company as the climate for seeking funds isn't the greatest amidst the growing market uncertainty, low sentiment, and uncertain political climate and governance.
Opportunity for the investor
Single or Multiple Debt Investments solicited as one-time Investment for a single Trichology Clinic in desired locations. Quantum of Debt Investments may vary for location of the clinic.
We are seeking loans to the extent US$ 60,000 to US$ 80,000 as one-time investment whereby an investor stands to earn 24.57% per annum. This would mean minimum earnings between US$ 14,000 to US$ 19,000 in value terms.
Our investors would be purely symbolic and silent type investors. It isn't desired that the investors be at all involved in the daily running of the clinic and its operations.
Recovery of Investments is ideally within a time frame of 5-6 years. Capital isn't paid back in this model but compensated for by the higher than market interest rates.
The Return on Investments (ROI) is 24.57% fixed which is announced to the Investor. Internal Rate of Return (IRR) is a promising 16.69% taking well into account that Trichology Clinics take 6 months on average to break even
Providing a one-time investment, the Investor may plan to make the entire quantum of investments at the outset. An investor agreement will be made henceforth to handle the statutory and legal concerns that most sides would prefer to abide by.
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