Financial Daily from THE HINDU group of publications
Wednesday, Mar 22, 2006
Corporate - Outlook
Money & Banking - Private Banks
Osim plans HDFC Bank tie-up for consumer loans
Mumbai , March 21
Paramount Surgimed Ltd, the master franchisee for the Osim brand of lifestyle products, is planning to tie up with HDFC Bank to offer loans to its consumers.
Mr Shaily Grover, Managing Director of OSIM India, said: "We are planning to offer EMI schemes to our consumers for buying the Osim brand of products and have decided to tie up with HDFC Bank for the same."
The company has decided to stay away from mass media advertising. Instead, it wants to rely on road shows primarily at malls to create awareness of its products.
Having introduced products such as iDesire (full body massager) and uZap (shaping and messaging belt), the Osim brand offers massage therapy-based products from Rs 300 onwards.
With eight concept shops in the country under the Osim brand, the company is open to other retail formats including shop-in-shops at big retail chains such as Shoppers' Stop.
In the past it has also tied up with the furniture retail stores of Godrej & Boyce - Lifespace - to vend its products.
Targeting a turnover of Rs 100 crore by 2010, the brand has already clocked Rs 30 crore in its first year of operations. Attracting steep import duties at nearly 38 per cent, Osim is positioned as a premium lifestyle brand in the Indian market.
The brand is also planning to tap the healthcare market and might approach corporates in this space.
For instance, it has decided to approach health care and beauty brands such as VLCC and Personal Care to vend its products.
"We are interested in selling our products to outfits already in the business of healthcare and beauty. At the same time we would also be ready to provide service support to these outfits, if needed," said Mr Grover.
Meanwhile, Osim expects to find a famous face to endorse the brand in India.
"We are in process of short-listing Bollywood personalities," said Mr Grover.
In the past it has roped in Neha Dhupia along with Ms India World, Sindhora Gadde, for the iDesire and uZap launches.
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