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- OSIM India set to drive major expansion: franchise is going to be preferable route
OSIM India, a distributor, supplier and dealer of lifestyle products and a division of Delhi-based Paramount Surgimed Ltd, is going to pump in Rs.50 crore over the next three years on expansion of its showrooms. The company is planning to open 50 exclusive showrooms by 2010 and scale it up to 100 exclusive outlets by 2012-13. “We are making it into a pan India operations and we will have presence in all metros and mini metros of the country”, reveals a company official. The products manufactured by its parent company, OSIM International Pte. Ltd. of Singapore, are sourced from abroad. These products fall in the categories of health, hygiene, nutrition and fitness. For expansion the company is trying to raise necessary finance from private equity and venture capitalist funds. Recently, OSIM has launched two new products, OSIM uPilot – a designer massage chair, and foot massager, OSIM uSqueeze. Last year the company has registered a turnover of Rs.50 crore and expecting to touch Rs.70-75 crore this year. The company sets the target of making a turnover of Rs.130 crore for funding from capital market. OSIM India is keeping the option of franchise route open for expansion. Their preferable location is malls with high footfalls. An investment of Rs.75 lakh is required to set up a showroom of OSIM. These stores should have a minimum area of 1000 sq. ft. For each metro, 4-5 such stores will be set up, discloses the company official. For franchise partner the company requires entrepreneurs with a vision and capacity to invest and adopt the OSIM concept of doing business. The franchisee could be from retail background and preferably into retailing high-end products like furniture, electronics, etc.