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Marico puts expansion plan on hold in India

Personal care major Marico has decided to put brakes on the expansion plans of Kaya Skin clinics in India due to drop in discretionary spends and a hike in price following 10 per cent service tax on s


February 03, 2010  |  comments ( 1 )  | 
Marico puts expansion plan on hold in India

Personal care major Marico has decided to put brakes on the expansion plans of Kaya Skin clinics in India due to drop in discretionary spends and a hike in price following 10 per cent service tax on services. However, it will continue to add more branches in its Middle East portfolio where profit margins are higher due to ready market and non-tax benefits. Currently, international business contributes 25 per cent to Kaya’s revenues.

The new strategy will focus on making existing branches more profitable through various promotional activities and offering.   Kaya is also counting on its over-the-counter (OTC) sale of personal care products which includes daily care, skin and hair solutions and beauty products for men. Currently, this category accounts for 13 per cent in Kaya’s Rs 200-crore turnover.

Kaya skin care’s turnover grew by 10 per cent during the quarter ended Dec’09. However, a cut in consumer spends and price hikes by Kaya company affected growth.


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Annick Thomas February 18, 2010 at 8:16 am

You are right to apply the brakes now!It's very sad that I don't stay in India but my origins are from INDIA. I said to myself Kaya is doing very well in India & Middle East but why not MAURITIUS???? I would suggest to be your franchise & be proud to represent this distinguish brand which I envy & look forward to hear from you shorthly.

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