OSIM-India to invest Rs 500-mn for showrooms expansion

Hyderabad: OSIM-India, a distributor, supplier and dealer of lifestyle products and a division of Delhi-based Paramount Surgimed, plans to invest Rs 50 crore over the next three years on expansion of its showrooms.

“The investment will be for expanding the showrooms from the current 22 outlets to 28 in the next three years. During the current fiscal we will be opening 10 more stores,” Mr Shaily Grover, Managing Director, said during an interaction with newspersons here on Thursday.

He said the products manufactured by the parent company OSIM International Ltd in Singapore are directly imported.

The company spends around Rs 75 lakh to Rs 1 crore as investments for each outlet. According to Mr Grover, it imports products under health, hygiene, nutrition and fitness categories. He said the company is looking at the possibility of investment of Rs 40 crore from a venture capitalist or private equity funds.“We are open to diluting around 20-25 per cent of promoter’s stake for raising funds, as by 2012 we are looking at having 100 stores across the country,” Mr Grover said.

On the two products launched recently in the city, he said ‘OSIM uPilot’ is a designer massage chair, which gives full curative effects of a therapeutic massage.

The other product OSIM uSqueeze is a foot massager. Its features include multi angle squeeze and wrap-around squeeze for personalised calves-ankles-feet massage.

He said last year the company recorded a turnover of Rs 50 crore and this year they expect it to be between Rs 70 and Rs 75 crore.

Speaking on the possibility of raising money from the capital market, Mr Grover said that once the company touches a turnover of Rs 130 crore they might exercise the option.

OSIM India is also looking at launching fitness products offered by parent company in the next three to six months.