Branded personalities

From Bhatinda to Belapur, the beauty business runs pretty deep! The beauty business is all about looking and feeling good. People like Javed Habib, Vandana Luthra and Shahnaz Hussain have become synonymous within this category and are now looking to grow their business further.

These entrepreneurs are now talking stocks ie. acquistions and IPOs. The fitness and beauty chain, Vandna Luthra Curls & Curves or VLCC, is doing due diligence, for acquiring a fitness chain and a domestic FMCG company in the herbal space.

Last month , hair stylist, Javed clipped off 30% of his company's equity to a domestic private equity player. His next plan is to tap the capital market to raise close to Rs 100 crore in 2008, funds from which will be pumped into increasing his salon strength from 80 to 500.

Chairman, Javed Habib Hair & Beauty, Javed Habib told CNBC-TV18, "Small town people have money and are looking for branded clothes. Why not offer them branded salons. I'm planning on entering small towns where there is a lot of business. I just started a salon in Bhatinda and it's doing so good."

The slimming business has also come a long way with established names branching out into new categories. So, players like VLCC and homeopath Dr Batra have all launched personal care products. VLCC claims, that this business forms one-fourth of its turnover.

Javed Habib has also opened training institutes that specialise in hair cutting. Shehnaz Hussain who was among the first to cash in on the beauty business in the 1970s, has over 700 franchise salons in 140 countries. The Shehnaz Hussain Group also retails close to 350 hair, skin and body care products, including a co-branded fairness cream with Elder Pharma.

Market sources say, her business has been on the radar of big domestic FMCG players. The only hitch is that her personality overpowers the brand. And by buying her out, they fear that the popularity of the Shahnaz brand might take a beating among consumers. Though Shahnaz herself isn't quite open to offers just yet.

"I had a huge offer from an American chemical company. For years I've promoted natural ayurveda, so how can I turn around associate myself with a chemical major," says Shahnaz Husain, Founder, Shahnaz Husain Group.

Industry watchers say that survival in the business is getting tough, with the likes of HLL and Marico, hunting for acquisitions. VLCC insist that they're prepared to expand on their own. They have already distanced Vandana from the organisation and have kept a succesion plan in place.

"I'm at VLCC in the capacity of a founder on the advisory committee. I advise, give my vision and the way forward. But it's the professionals who are actually taking it forward," says Vandana Luthra, Chairperson, VLCC.

Internationally a few fashion and beauty brands that have outlived the founding personality, Chanel is one such example. But on the other hand, Armani has moved beyond designer suits to cafes and furniture and has come in for criticism for not planning for life after Giorgio Armani.

Experts are divided in their view on whether the Rs 3,300 crore Indian beauty and wellness market is mature enough for brands to outlive the personalities that built them.

Molshree Vaid