Get latest articles and stories on Latest News at LatestLY. Kairali Ayurvedic Group has budgeted Rs 100 crore investments towards domestic expansion and set a target of closing this fiscal with a Rs 100 crore topline.
Mumbai, Apr 19 (PTI) Kairali Ayurvedic Group has budgeted Rs 100 crore investments towards domestic expansion and set a target of closing this fiscal with a Rs 100 crore topline.
The group has pioneered the concept of ayurvedic spas by launching its maiden venture in Kerala’s Palakkad district in the late 1990s.
The group founder KV Ramesh’s family traces its roots to Ayurveda in 1908 when his great grandfather opened Kerala’s first Ayurveda clinic in his hometown Palakkad. He also made history by becoming the first Ayurveda doctor in the country to create ayurvedic injections.
Ramesh entered the business when he launched an ayurvedic clinic in Delhi in 1985 and Ayurveda spas with the 30-keys in a village near Palakkad in 1999.
Currently, the group runs 45 centres across 14 locations in the country; and a 200-keys facility in Prague and 77 villas in Bulgaria on a management contract model, earning a royalty. The 100-hectares Prague facility also has a 27-hole golf course, Abilash K Ramesh, executive director and the elder son of Ramesh, told PTI.
That apart, the group also has centres in Tokyo and Kanagawa in Japan; Byblos and Jiya in Lebanon; Dubai and Abu Dhabi in the UAE; Malaysia, Mauritius, Poland, New Zealand and the US.
He said the overseas expansion will primarily be in the JV model and new facilities will come up in the US, Mauritius, the Middle East, the Bahamas in the Caribbean, and Thailand this fiscal, while the domestic expansion includes the opening of the upcoming north Goa facility and a new facility in the Andamans, both collectively involving Rs 100 crore capex on completion by the middle of next fiscal.
The north Goa facility at Agonda with 18 ultra-premium villas should be ready for commercial opening from the September quarter, he said.
He also said that apart, the group, in a three-way JV, has acquired 250 acres on the Goa-Maharashtra border and this project will have a township, residential properties and a 30-keys Ayurveda retreat centre along with an 18-hole golf course.
The group manufactures all its Ayurveda medicines and potions at its Pollachi facility, near Coimbatore in the neighbouring Tamil Nadu, where it also has a commercial unit that manufactures ayurvedic cosmetics products such as soaps, shampoos, hair conditioners, moisturisers, shower gel and herbal teas.
On the revenue said, Abilash Ramesh said the past two years have been a washout and he hopes to close FY22 with around Rs 12 crore topline (FY20 was the best so far with Rs 8 crore revenue).
He sounded cautiously optimistic (as the pandemic is not fully behind us) this fiscal, with a Rs 100 crore topline of which Rs 30 crore should come from the cosmetics division.
Ramesh said on average the spa division earns 40 per cent margins but the product division operates on low margins.