Mumbai, Aug 12 (PTI) Skincare services provider Kaya from the Marico stable aims to increase its revenue share from haircare segment to 10 per cent, a top company official has said.Also Read - Govind Vs Krushna Abhishek: Arti Singh Opens Up About 'Consequences' She Faces Because Of The Tiff
Kaya claims to run the largest dermatological chain in the country operating 99 clinics across 26 cities and as many as 24 in the UAE. Also Read - Saba Karim Questions BCCI Over 'Unfit' Hardik Pandya's Selection in T20 World Cup Squad
It entered the haircare services a couple of years ago and has 91 clinics, where it offers these services, besides three hair transplant centres. Also Read - Sameera Reddy’s Message on Body Positivity is The Perfect Way to Start Your Weekend | Watch
“Haircare is roughly seven per cent of our business now. Last year, it grew 45 per cent and in the June quarter 42 per cent. We expect to close this fiscal with a 10 per cent of revenue from haircare. The opportunity is much larger and we would like to move upwards of 20 per cent in the mid term,” chief executive Rajiv Nair told PTI.
The company is also eyeing to double digits growth this fiscal, he said.
The Harsh Mariwala founded company had a revenue of Rs 400 crore last fiscal year, of which domestic market contributed half.
The company also retails its products through 150 points of sales besides through the clinics. It has 75 SKUs, of which 12 are for haircare and Nair said they would be adding more SKUs to the haircare portfolio.
Hair contributes eight per cent of the product revenue. Products overall contribute to around 20 per cent of the turnover.
“Our growth has been strong in product business. Our mix has changed from 15 per cent of product business to 20 per cent over the last 18 months,” he said.
E-commerce contributes to around 20 per cent of total product business and it is growing at a strong 67 per cent albeit on a small base, but the company has seen good growth in e-commerce over the last two years, he noted.
In Kaya Skin Bars, its shop-in-shop outlets for products in general and modern trade, it has seen a 36 per cent growth in the last quarter.
The city-based company that offers skin and haircare services now is also looking at body contouring in the domestic market.
“We already offer body contouring services in the Middle East. It is still a very small part of our business, averaging roughly 4 per cent of our business there.
“But I see this as the next big thing as far as minimally-invasive dermatology is concerned. We have also started it in one of our clinics in New Delhi,” he said.
Kaya claims to have 2.5 lakh active customer in the country and 1.5 lakh in the Middle East. Male clients account for 13 per cent of the mix which it expects to increase over a period of time.
The company, which spends 2.5 per cent of the income on R&D and 6 per cent on marketing, also sees potential in expanding to small towns.
“We are present in 20 tier II cities now with a single clinic each. We have seen good growth in cities like Lucknow, Indore, and Kochi. So we can at least double or treble our footprint in these cities,” he said.
This is published unedited from the PTI feed.