Company expects 40-60 per cent of new salons to be owned by women entrepreneurs
Trends in Vogue, Cavinkare’s arm that manages unisex hair salon network Green Trends, and Bharatiya Mahila Bank (BMB) have entered into a pact that seeks to make the entrepreneurial plunge easier for women.
Budding women entrepreneurs who take up a franchisee of Green Trends (GT) can get two-thirds of their total investment (Rs.40-50 lakh) financed by BMB without any collateral.
“At least two out of 10 women we meet up are interested in starting a beauty parlour. With this tie-up, we can promote women entrepreneurs not only in cities but also in tier 2 & 3 towns,” said Usha Ananthasubramanian, Chairman & Managing Director, Bhartiya Mahila Bank.
“Collateral security is the key in getting loans from banks for entrepreneurs. This agreement will help all prospective franchisees, especially women, across the country to get collateral-free loans,” said C K Ranganathan, Chairman & Managing Director, Cavinkare Pvt. Ltd. Green Trends plans to increase the number of salons from 200 now to 500 across the country by the end of this fiscal. Of the proposed 300 new salons, 260 salons are to be set up through franchisee mode, and the company expects 40-60 per cent of it to be owned and managed by women entrepreneurs.
The company helps franchisees choose right location, get good realty deal and select right vendors for supplying equipment and systems. It has lined up a string of vendors who could do the works in salons at a competitive rate than others.
Mr. Ranganathan said the company was running profitable franchisee network business and its franchisees could achieve cash break-even in 3-6 month period.