Mumbai-based JCB Salons Pvt. Ltd is acquiring two companies—hair solutions specialist Trica Hair Clinic and home service brand The Home Salon—to enhance its offerings.
In July, VCCircle first reported that JCB Salons is exploring a strategic acquisition and is in talks with a few investors to raise Rs 20-25 crore.
Buoyed by these acquisitions, the company expects to double revenues in three years, he said.
The development was first reported by The Times of India.
With its French lineage, the firm has, so far, operated in niche areas offering foreign products and premium services.
“The acquisition will help it move up the value chain from merely offering care-services to cure-services,” Srivastav said.
As part of the acquisition, Trica Hair Clinic’s team of 40 employees and 50 employees from The Home Salon will join JCB Salons.
At present, JCB Salons operates 12 salons in Mumbai and four in Bengaluru and plans to open a salon each in National Capital Region and the western region.
The new services would add value to its existing base of 1 lakh annual customer visits, with 60% repeat customers, Srivastav said.
JCB Salons' turnover is around Rs 65 crore. Trica Hair Clinic has an annual sale of Rs 5 crore.
The salon market has a few established players and is highly fragmented. JCB Salons competes with BBLUNT, Bodycraft and other home-grown brands. Other players in the space include Hindustan Unilever's beauty products brand Lakme’s salon chain; Naturals; Kaya Clinic, which was spun out as a standalone offering by consumer goods maker Marico; VLCC; and Future Group's Star and Sitara, among others.
Future Group said last year that it was looking to exit Star and Sitara. Venture capital fund Helion Venture Partners is also planning to sell its stake in the Bangalore-based beauty and spa salon chain YLG India. Another Delhi-based company Looks Salon Pvt. Ltd plans to accelerate expansion through franchisees after doubling the number of salons in its network since 2012.
JCB Salons has, in the past, raised capital in multiple rounds from investors such as Rare Enterprise, Rekha Jhunjhunwala, ASK Investment Managers. In August 2015, the company raised Rs 5.9 crore from Jhunjhunwala. Prior to that, it raised four rounds of capital from Asit Koticha, owner of ASK Investment Managers Pvt. Ltd, in 2007, 2011, 2012 and 2014, according to VCCEdge, the data-research platform of News Corp VCCircle.
It is majority owned by Asit Koticha and a significant stake is owned by the family members of Rakesh Jhunjhunwala.
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