Clove Dental to invest $25-30 million in five-year for expansion
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Mumbai: Global Dental Services, which owns and operates a chain of dental clinics called Clove Dental, will invest $25-30 million in a five-year expansion plan during which it will add 10-12 clinics a month, the company said on Wednesday.
The company plans to raise further capital from its existing promoters, who have already invested $25 million since it started in 2011.
The Delhi-based company currently operates 118 clinics, out of which up to 90 are in Delhi. It aims to open 32 more clinics by March 2017 and is chasing 250% growth in revenue.
Usually, the company sets up two- to four-chair clinics. A two chair clinic, which can attend to two patients at a time, generates Rs9 lakh of revenue per month. Clove’s revenue grew 300% fiscal 2015-16. “The thing to look here is that how many clinics are generating Rs900,000 revenue and how long does it take for a clinic to reach there; because while 60 new clinics were opened this year, most of the revenue is still coming from the previous 60 clinics,” explained Clove’s chief executive officer, Amarinder Singh, in an interview.
Clove identifies an area of 700 to 1400 square feet in a commercial location to set up a dental clinic, with a capacity to attend two to four patients at a time. The company takes the clinic space on lease for about nine years, and invests Rs30-35 lakh on renovating and deploying equipment in a given clinic. Clove spends about 8-10% of total expenses on rent.
These clinics serve 18-20 patients daily; 70% of them would pay a fee of Rs1,200-1,500 for less specialized services such as teeth cleaning, while remaining patients pay higher fees for root canal surgery, or implants, which can cost between Rs30,000 and Rs50,000, said Singh.
In the next five years, the company aims to have 600 clinics pan-India and grow to become a $100 million brand, said Singh.
Other dental healthcare chains that have emerged in India include Mumbai-based Mydentist ( Total Dental Care Pvt. Ltd.), Denty’s Dental Care (Today’s Healthcare India Pvt. Ltd), among others.
Also founded in 2011, Mydentist has raised more than Rs100 crore from investors such as LGT Venture Philanthropy, Seedfund and Asian Healthcare Fund.