Chennai’s homegrown beauty salons are making the most of the Bharatiya Mahila Bank's (BMB) financing scheme for women entrepreneurs.
At least two major salon chains have tied up with the country’s first women’s bank to get financial support for their franchises, comprising mostly womenfolk.
The R1,200-crore FMCG major CavinKare’s salon business unit — Trends In Vogue — on Thursday announced a strategic partnership with BMB to promote women entrepreneurs in the organised beauty salon industry in the country.
As part of this, CK Ranganathan, CMD of CavinKare, signed an MoU with Usha Ananthasubramanian, CMD of BMB. Cavinkare has two salon brands, Green Trends and Limelight, under Trends In Vogue.
As per the MoU, BMB will provide a loan between 65% and 75% of the total project cost and this will be available for franchises across the country. The rate of interest will be from 11.5% to 12.5% and a 1% concession will be given to the women entrepreneurs. Typically, setting up a salon costs somewhere between R40 lakh and R60 lakh.
Said Ananthasubramanian: “We see a tremendous potential in the Indian beauty industry for women to establish themselves as entrepreneurs. With this scheme in place, we are confident of developing more independent women as entrepreneurs across the country.” She said the bank is also getting into financing women to run day-care units, loans for modifying kitchen as well as other similar loans. “We are also planning to roll out BMB's mobile van units to reach out to women.”
CavinKare's Green Trends plans to have 500 salons by the end of this financial year. It also plans to introduce a first-of-its-kind mobile and online check-in service in the Indian organised salon segment.
CK Ranganathan, CMD, CavinKare, said: “This initiative will not only ease the overall process in setting up a salon monetarily, but also empower more women to emerge as successful entrepreneurs which is in line with the overall vision of BMB.”