Tag Archives: Growth

VLCC To Spend Rs 200 Cr By 2013 Aiming Growth

Riding high on the rising demand for skincare items, VLCC stated that it plans to launch a novel variety of products in the anti-pollution group and will spend around Rs 200 crore by 2013 on domestic and abroad development.

VLCC healthcare managing director Sandeep Ahuja stated, “We will launch the anti-pollution range by the end of this month, which will be priced affordably. It will cater to a far greater population. It is a whole range of products from sunscreen to shampoos and we have high hopes for that.”

Mr. Ahuja stated that the products will be priced below Rs 100, which is far less than its other items.

VLCC, which has attendance in seven nations, with around 20 outlets, is also making plans to swell its overseas footprint.

“We added three new countries – Sri Lanka, Bangladesh and Qatar. We plan to open another outlet in Dhaka in six months, the second in Doha by this year-end and Kuwait by early 2012,” Ahuja said, adding that VLCC proposes to launch a manufacturing division in the Middle East by the next two years.

Wellness and beauty firm, which has 163 slimming and beauty centres in approximately 102 cities across India, projects to roll out 15 new company-possessed outlets in the xsiting financial year.

VLCC also anticipates doubling its franchisee outlet strength from the subsisting 35 to 70 in a period of one year.

“We are targeting a 25% growth and aim to be a Rs 1,000-1,400 crore company in the next two years. We will spend Rs. 100 crore each year for the next two years,” he added.

Can India control Inflation and Manage to Reach Growth Targets

Indian economy faces tough times in coming quarters and Finance Ministry might find it difficult to keep inflation in control. Major trouble for the Indian economy is the expected slowdown in demand in western countries. The export related sectors might feel major impact on earnings and margins.

RBI has increased the base rates by 11 times since March 2010. The
interest rates for home loans have increased, putting more pressure on home loan consumers. New home loans have become expensive and this has bad effect on real estate sector.

With increasing borrowing costs, business owners are finding it difficult to raise money in India. There are many projects in infrastructure and power generation sector, which need higher investments.

With expected decline in manufacturing sector growth numbers, Indian companies may not be able to maintain the current margins. Stock market valuations for most companies have declined in the recent times. Banking, Real Estate and Technology stocks are trading near their 52-week lows. Major real estate companies are facing troubles for their housing projects. Brokerage houses across the world have given mixed outlook for Indian markets.

RBI expects inflation to remain higher for upcoming two quarters. The report points out that Inflation may reach 7% by March 2012. US Dollar has crossed Rs 46 level as FIIs continued selling during the past two weeks.

Goldman Sachs has said in recent research report that inflation will fall to six percent by March 2012. Goldman Sachs gives reduction in demand as major reason for the decline in inflation however, it is not sure that inflation can fall so much within 9 months. The oil prices are expected to remain strong in India and we have noticed in past that the oil prices generally do not go down in the country.