VLCC set to acquire domestic FMCG firm

VLCC Group of Companies is poised to acquire a large FMCG company and is also looking at expansion plans in the next three years.

"We are about to acquire a large FMCG company in the domestic market. The decision should be finalised by October 2006," said Mr Mukesh Luthra, Chief Managing Director, VLCC Group of Companies. Though he refused to divulge the details, he said the acquisition cost would be in double digit crores.

Overseas Expansion

Further, the company is also looking to acquire other domestic and international companies in the slimming, beauty care, health and personal care segments.

Mr Luthra said the company would make a total investment of about Rs 100 crore in acquisitions. He added that VLCC was expecting to garner 10-15 per cent of total revenue from the acquired companies.

Mr Luthra said that as part of its expansion in the overseas market, VLCC had recently begun its Dubai operations at an investment of Rs 5 crore.

The company's domestic expansion plans include seven more `Beauty Zones', which would target youth through its offering of body and nail art.

Three are currently functional in Ludhiana, Delhi and NCR.

Institutes

The company was looking at opening four more Institutes of Beauty, Health and Management in Mumbai, Chennai, Hyderabad and Pune. The company has already invested Rs 120 crore in the current fiscal, he said.

According to Mr Luthra, the company's growth rate is almost 40 per cent of which FMCG segment is growing at around 116 per cent and the beauty and retail segment at 150 per cent. The company's turnover was Rs 200 crore during the previous fiscal and it targets Rs 350 crore in the current financial year.

Taken from Business Line

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