Times of India: October, 2016
Mumbai: The India beauty and spa space is witnessing consolidation with French salon and spa chain Jean-Claude Biguine (JCB) making two acquisitions — hair solutions specialist Trica Hair Clinic, and home service brand The Home Salon — for an undisclosed sum. These mark JCB's first acquisitions in India, expanding the scope of its business to offering luxury products and services at customers' homes as also providing specialist hair solutions to existing customers.
The transaction of The Home Salon, which is one of the fastest growing home-based beauty service providers, is a mix of cash and equity. Both founders Rishika Chandan and Nihar Thanawala will continue to spearhead the operations for home services.
On the other hand, the acquisition of Trica — an entrepreneurial venture of former Marico and Raymond executive, Rakesh Pandey — provides JCB with a range of personalised consultations as well as non-invasive hair and scalp clinical treatments that include those for curing thinning and hair-loss.
Confirming the two deals, Samir Srivastav, CEO, Jean-Claude Biguine Salons and Spas India, told TOI, "We expect to double revenues in three years from both these acquisitions in the existing JCB Salon operation footprint."
JCB's India turnover is around Rs 65 crore from its current two-city (Mumbai & Bengaluru) operations. JCB India also has geographical expansions planned for the new format. "We will expand the operations in India as also in West Asia, which is the Middle East and the Gulf, to begin with," said Srivastav.
Rakesh Pandey of Trica Hair Clinic, which has annual sales of around Rs 5 crore, said the deal is a first of its kind, considering that it brings a salon brand and a cure company together. "We wanted to scale up our business rapidly but real estate and customer acquisitions were a challenge. We had considered other options like a VC funding as well. But we believe the JCB option is the best for Trica given that our client profiles are similar," said Pandey, who was earlier associated with Marico's Kaya and grew the business from inception.
Pandey said the growth potential in this segment is huge given that nearly half of the Indian population aged 20-50 years is said to be in need for hair cure. Incidentally, both Srivastav and Pandey worked together at Marico. While Srivastav was the head of Kaya Middle East, Pandey was Kaya CEO for India and Middle East.
The more than Rs 61,500-crore beauty salon market is said to be growing at a CAGR of 27% since two years. Home salon services have been picking up given the paucity of time at the consumer end. Increasingly, the consumer is looking for convenience and this has given rise to a number of entrepreneurial ventures like MyGlamm and EazySalon, which offer salon services at home.
According to a KPMG report, the size of India's beauty and wellness market would reach around Rs 80,370 crore by 2017-18 (from Rs 41,224 crore in 2012-13).