Dr A's Clinic

Dr.A’s Clinic is a leading centre specializing in hair transplant and hair transplant repair surgeries in Delhi, India. It enjoys commendable reputation with over 13 years of operations. They offer various hair and skin care Keratene products, imported from Netherlands. Dr.A’s Clinic has an exclusive right to distribute these products at a PAN-India level. The company now intends to increase its presence and have a 360 degree approach to distributor acquisition and delivering the business all around the Indian markets by way of Distributorship. Dr.A’s Clinic will follow distributor model to increase sale of Keratene products in the Indian market. The initial set-up cost for Dr.A’s Clinic unit Distributor would be around INR5, 00,000-INR6, 00,000 including the cost of setting up the centre, training cost, lease deposit and initial stock along with the working capital requirement for the initial period of business operations. The stock requirement for a 250 sq ft store is benchmarked at INR 2, 50,000 for 60 days. The minimum inventory required to be maintained at any point of time will be INR 1, 25,000. The exact investment would vary with location depending on factors such as rent/self owned, area for the centre, and prevailing rates for capital investment per sq ft as per the city chosen. The training and support cost extended to the distributor will be INR 50,000. The refresher training will happen once a year in case new Keratene products are introduced in the centre. Dr.A’s Clinic support will include transfer of technology and systems, providing design of marketing and advertising collaterals, website support and consultancy support for staffing and training. The initial agreement is for 3 years for Distributor with an option of renewing it further subjecting to mutual agreement of both the parties. The break-even point varies from location to location as it depends on variety of factors such as new products introduced, overheads, operating costs and business performance. However, the USP of this business is the faster payback period and the quick break-even point between 9 to 12 months.