VLCC healthcare initiates expansions to reign $19.1 bn wellness & Beauty sector by ’25

Hyderabad, Dec 6: VLCC Health Care Limited (“VLCC”), one of the largest players in the Wellness and Beauty service industry in India, on Monday said, it has initiated expansion plans to leverage the opportunity arising through estimated growth to US$ 19.1 billion in Wellness and Beauty service industry by 2025 from US$ 10.4 billion in 2020.

VLCC serves customers across 310 locations in 143 cities across 12 countries in Asia and East Africa.
VLCC has a principal network of company operated outlets consisting of 103 VLCC Wellness Clinics in India, 21 VLCC Wellness Clinics in overseas markets and 52 VLCC Institutes in India.
It also has 88 franchisees operated VLCC Wellness Clinics and 42 franchisees operated VLCC Institutes in India and 4 franchisees operated VLCC Wellness Clinics overseas, the company said in a release.
With a total of 191 Wellness and Beauty Clinics and 94 Institutes for Beauty and Nutrition in India, 37 and 15 respectively are located in South India and in which 12 clinics and 2 institutes are located in Andhra Pradesh and 5 clinics and 3 institutes in Telangana.
The Company believes there is an opportunity for further growth in the markets in which it operates, given the rising levels of obesity and lifestyle related diseases and growing awareness amongst consumers about the need to invest in proactive healthcare, especially in the light of the COVI-19 pandemic outbreak.
In order to build on its track record of expansion, it plans to strategically increase its presence and market share in the wellness and beauty industry by setting up new VLCC Wellness Clinics in India and in the GCC Region, as well as new VLCC Institutes.
In addition, in line with its past practice, certain VLCC Wellness Clinics in India and in the GCC Region are also proposed to be refurbished and re-equipped for their maintenance.
In India, VLCC expects to add 20 new VLCC Wellness Clinics, 12 new VLCC Institutes by 2023.
Simultaneously, it also plans to undertake refurbishment of 65 existing Wellness Clinics by 2023.
VLCC expansion plan in India for the next two years will be aimed at increasing both penetration and spread.
In Metropolitan and Tier I Cities where the company already has a presence, it will be focused on increasing penetration by opening new Wellness Clinics and Institutes, which would be Company operated.
In Tier II and Tier III Cities in India, VLCC intends to increase its geographic spread through opportunity-based opening of new franchisee operated Wellness Clinics and Institutes.
According to the Frost and Sullivan Report titled “Wellness and Beauty Industry report in India and GCC” in July this year, the Wellness & Beauty services industry in India stands nearly at US$ 10.4 billion in 2020 and has grown at a CAGR of 8-9 percent over 2017 – 2020. Over the next five years, growth is expected to increase to a CAGR of 12-14 percent, reaching US$ 19.1 billion by 2025.
Within the industry, the market share of organized segments is expected to grow around 30-35 percent in 2025 from about 25-30 percent in 2020 led by higher demand for preventative healthcare services and rising density of urban areas which will increase wellness and beauty service outlets from approximately 500-600 outlets to around 1,500 by 2025.
In addition, the distribution of healthcare expenditure by function is also showing a positive trend toward prediction and diagnosis, whereby investment in prediction is expected to grow from 5 percent of total healthcare expenditure in 2007 to around 22 percent in 2025, and investment in prevention is expected to grow from 15 percent to 27 percent in the same period, indicating a positive trend towards proactive and preventive healthcare, the release added.