Hygiene Research to buy overseas firm

Mumbai-based hair-care solutions provider Hygiene Research Institute is in talks with a host of foreign firms for a possible acquisition in the sector in FY11, a company official said. The company also plans to invest Rs 40-crore to fuel its business expansion. "We are in talks with a few companies abroad to acquire an international haircare brand in FY11. We are also investing Rs 40-crore for expansion plans in India in the coming fiscal," HRI's Executive Director Ashish Chhabra told PTI here. HRI, which manufactures well-known hair dye brands Super Vasmol and Streax hair colour, plans to invest Rs 20-crore in FY11 to open 10 hair studios under the brand name Streax Head Turner. The chain of salons will come up primarily in tier II cities, he said adding that at present, the company has two such salons in Mumbai and Pune each. The company also plans to set up its second overseas manufacturing unit in Srilanka with an investment of over Rs 20-crore by the end of FY11. Investment for expansion would be through a mix of internal accruals, debt and equity, he said, however, ruling out any plans for an Initial Public Offer. The Rs 175-crore company, which has an annual growth rate of 20 per cent, targets a turnover of Rs 200-crore in FY10.