Syed Safawi, MD and Group CEO, VLCC Healthcare believes that franchise would be the model to grow in the coming years.
VLCC, whichstarted its journey in 1989, has grown many folds since then and planning to go global via franchising. Syed Safawi, MD and Group CEO, VLCC Healthcare believes that franchise would be the model to grow in the coming years.
How do you deploy franchising in your business model?
Although we had opened up to the franchise model a few years ago, we took our time to mature it. The move into franchising was driven by the realisation that there was a latent demand for quality beauty and wellness services in tier II and tier III cities, and growth was restricted owing to a limited presence of established and organised brands.
The growth in coming days will be from the franchise model. We offer franchising opportunities in our beauty and slimming centres and our vocational education institutes.
We have three models of franchising: Master Franchise, Unit Franchise and Multi-Unit Franchise.
Which is the high revenue generating model?
The business is divided between products (personal grooming, health foods and weight-loss supplements) and services (wellness centres and vocational education business).
However, about 70 percent of its revenue is from the services segment, including the vocational education business. The remaining 30 percent is through products.
VLCC plans to go global via franchising. Please share some details.
We are currently on the most dynamic growth trajectory, with an ever increasing number of people becoming conscious of not only their looks but also about their overall health. We at VLCC are very interested in growing both organically and inorganically, be it in the personal care products category or expanding towards digital and on-demand services. We will continue to evaluate fast-growing categories but will wait for the right time to move-in. We are actively seeking franchise partners for our wellness centres and vocational education institutes. We would like to associate with entrepreneurs from business backgrounds and SMEs.
Year of inception: 1989
Year of starting franchise operations: 2007
Company-owned outlets: 177
Franchise outlets: 77
Expansion: Tier II and III