Eight franchised sites to open this year alone
PITSINEE JITPLEECHEEP
Surangrat: Hopes to be international player. |
Thai Privilege Spa Co (TPS) has sealed a business deal with two Indian conglomerates to open at least eight outlets on a franchise basis in India this year before expanding to Italy and Sweden. Chief executive Surangrat Chirathivat said aggressive expansion overseas would fulfil the company's mission to become an international spa chain.
''When people think about hotel chains, they will name Marriott, Sheraton or Hilton. But, if people think about spas, we want Thai Privilege Spa to be their first priority,'' she said.
Mrs Surangrat has sold a franchise to Krislon Group, which is involved in the property and garment businesses, to open two spa outlets. Agrigold Group of Industries, a major Indian conglomerate with interests in consumer products, food processing and power plants, would open six outlets in India.
The eight spas would be in Visakhapatnam, Mumbai, Hyderabad, Vijayawada, Bangalore, Chennai and Pondicherry. Seven would be under the Thai Privilege Spa brand and one under Sarahn, the sister brand.
The company expects to hire about 100 people to operate the eight spas, and to earn 48 million baht from franchise and entrance fees in the first year.
The first spa will open by the end of August in a prime residential area in Mumbai.
''Mumbai is the first location for Sarahn, which has a different character from the original Thai Privilege Spa, aiming to widen our customer base to those who can take treatments with more frequency and become our regular customers,'' she said.
Mrs Surangrat said the company collected US$100,000 as a franchise fee and $100,000 for an entrance fee for each spa outlet. It would also obtain a royalty fee of about 15% of total revenue in the next two years, and 20% for the following three consecutive years.
''India is very welcoming for Thai investors. Currently, its GDP growth is about 9% and I believe that its infrastructure will be the same as Thailand's over the next three years. Moreover, the social and business culture of India and Thailand is about the same,'' she said, adding that there was huge potential for luxury services.
She added that over the long term in India, the company would not only focus on spas but also create other service businesses with its partners.
For example, it would open a Thai Privilege destination spa, offering treatments over three to five days like Chiva Som, the well-known spa resort in Hua Hin. The spas would be located in small luxury hotels at residential projects belonging to its Indian business partners.
Mrs Surangrat said that apart from the two business partners, the company was negotiating with some of the largest property developers in India to buy a Thai Privilege spa franchise. If a deal can be sealed, the company expects to operate another five outlets in India.
For the Middle East, negotiations are progressing well with about five TPS projects planned.
''After the Middle East, we will look for new opportunities in Italy and Sweden. We are confident we can complete other spa projects because we have already proved our success in New York and Shanghai,'' Mrs Surangrat said.
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