BANGALORE: Personal care products company Nature’s Essence on 5 September said it is targeting Rs100 crore sales turnover in the next 16 months and plans to come out with an initial public offering of Rs100 crore thereafter.
Announcing its expansion plan here, Nature’s Essence Executive Director (International Affairs) Saurabh Nanda said the decade-old company, which currently has a group turnover of Rs30 crore, plans to enhance its presence in metros, B and C cities and towns.
The funds raised through the initial public offering would be used for enhancing its manufacturing facilities and starting 100 stand alone stores in the country, Nanda said.
The company currently has a manufacturing unit at Haridwar with a capacity of 1,500 tons, which would eventually be raised to 3,500 tons. In addition, the company is setting up a unit in Uttaranchal which would have a capacity of 7,000 tons by 2010. The company would invest Rs20 crore in the new facility at Kotdwar at Uttaranchal.
Nanda said the company would also start a direct marketing company with an exclusive network of 5,000 distributors to sell its brand.
It also proposes to double its manpower to 2,000 and reach 20,000 direct selling points.
The company, which currently taps 10,000 salons, aims to reach 25,000 salons and would also foray into the hotel and spa segment by striking a new business model with these hotels.
“We will offer these hotels our toiletries but would not have any cash transaction. Instead we would book hotel rooms for our conventions and promotions of the similar value,” he said adding it hoped to break into two-three leading chain hotels using this new model.
He said the company already has tie-ups to sell products for private labels. It had tied-up with a US buyer, a tele-shopping organiser and an Australian buyer for the purpose.
“We are in talks with some leading supermarket stores to sell our products for their private label,” he said adding the new business is expected to bring in Rs 25-30 crore revenues in the next two years.
The company, which currently has presence in 16 countries including Caribbean Islands, South Africa, Gulf, plans to make a foray into the CIS countries, Nanda said.
Cashing on the demand in men’s grooming segment, the company plans to launch two more products in addition to the existing two in this segment.
The cosmetic market, both organised and unorganised, was roughly Rs20,000 crore and the market was growing at 30%. The herbal market segment was growing at 50%, Nanda said.