Home Beauty & Wellness Jawed Habib combs market for scale

Jawed Habib combs market for scale


With more than 225 salons and training institutes across India, Jawed Habib Hair and Beauty Ltd (JHHB) is looking to expand by adding more franchisees and through acquisitions. The company filed a DRHP in February to raise Rs 60 crores. SEBI clearance is awaited. A part of the money raised will be used for brand building, to create fully-owned ‘showcase outlets,’ and to build an in-house IT system with its own ERP-CRM software.

“We’re looking at allocating some funds for acquisition of salon chains which are unable to grow, and to whom we can add the strength of our support functions. In some cases, we may not even change the brand name,” says Jawed Habib, MD, JHHB.

The group trains over 1,500 people a year at its 41 academies, and claims ‘bench strength’ of 100 to 150 at any point in time. JHHB launched its first mass media campaign this month, led by a national print campaign. The company has disclosed that Rs 6 crore has been allocated for brand building in FY ’12.

Till date, the chain has expanded largely through the franchisee route, word-of-mouth, leveraging the Jawed Habib equity through master franchisees and exclusive sales agents. The back-end to handle response to the ATL campaign is in place, including a call center in Pune.

Source: www.thehindubusinessline.com