Health and wellness May, 16 2016

“We deliver health services to the customers in a traditional and authentic form”- Ramesh

In an exclusive interview with Franchise India, Abhilash K Ramesh, Executive Director, Kairali Ayurvedic Group talks about new emerging markets.

By Joyshree Saha
“We deliver health services to the customers in a traditional and authentic form”- Ramesh

Please tell us in detail about your journey from inception till now?

The Kairali Ayurvedic Group was founded on the true tenet of ayurveda and till date, we perform the original form of ayurveda. Since our inception, we are present across 40 locations, 2 Resorts and have multiple ayurvedic medicines and products. The journey till now has been a great experience for us. We have just opened our first centre in USA. As we are entering into different markets and promoting ayurveda internationally, there are lots of challenges faced which adds to our experience and knowledge. Our heart and soul lies in ayurveda and thus the passion is what drives us in getting into ayurveda business.

What is unique about your products and services?

Our product delivers good results to the people in getting their ailments alleviated. And we also deliver healthy services to the customers/patients in a traditional and authentic form.

What are the challenges in franchising that you want your investor to know?

  • The challenge for the investor is to target right people.
  • The investor needs to understand that we are here to sell a premium subject “Health” with no side effects
  • Patience is the backbone of sustaining in the market.
  • Why did you choose the franchise route for your expansion?

    Since, we have opened our first centre in Delhi; we have adopted the route of franchising for expansion. We wanted to spread out the awareness of ayurveda and its benefits globally in any possible form.

    What criteria do you follow for selecting franchisees on board?

    Firstly, we look into the investor’s interest in propagation of ayurveda and love for it. Then we look into the background of the investor. We have certain standards fixed under our Kairali brand, we tend to deliver those and if the investor is willing to go forward with them, both ours as well as the investors brand can add value to each other. The model that we propose to the investor is the FOFO (Franchise Owned & Franchise Operated) model. Under this model we help investors to establish and run their business under our brand name.

    What kind of training and business support do you provide to the franchisees?

    Training to the staff (ayurvedic doctors & therapists) recruited to join the franchisee centre is mainly provided at our Resort or at the Delhi Centre. On-site training to the centre in charge/manager/receptionist is provided by our operations manager for better performance of the franchisee centre. We also help our franchises with their marketing activities. We promote the franchise centre at our Kairali centres websites, PR, social media etc. All marketing collaterals designs are provided by Kairali. We also train the owner in the general field of ayurveda so they know the product and have enough knowledge to run day to day operations.

    Typically for an investor who is planning to invest in the Ayurveda centre, what are the factors that he/she should keep in mind?

    Firstly, he/she must be clear with his/her long term vision. Investor needs to understand that this business will not bring in returns from day one, so he/she must put all efforts to promote and create awareness. The investor must have patience for RoI. Breakeven usually happens in 1 to 1.5 years.

    Which are the markets, where you are coming up?

    Today, we have 40 centres across the world. In India, we have recently opened our first centre in the North East where the weather is similar to that of Kerala. We have been receiving positive responses especially from North India and plan to expand this further. Tier I & Tier II cities are our main target markets for now to have Kairali Ayurvedic Centre franchise.

    Franchise facts:

    Investment: 50 Lakhs

    Existing outlets (company-owned +franchise): 35

    Area: 2000 Sq. Ft.

    RoI- 35% ROI at 30% Occupancy Levels

    Breakeven: 1 to 1.5 Years

    Target cities: Tier I and Tier II cities in India & Internationally to UK, USA and Middle East

    Preferred location: Standalone properties

    Year of inception: 1989

    Franchise model: Master & Unit

    Related: Capitalising on ayurvedic returns

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