"According to him, talks are on with a large hotel chain for the new business division and funding will be made based on the contracts."
Chennai, April 19 - Corporate clothes launderer Laundry Project India plans to expand its business operations by setting up operations in Pune and National Capital Region - this year and also venture into leasing of linen and corporate uniforms, said a top company official.
The company will also increase its retail outlet Wassup's presence by adding around 40 outlets mainly through franchisee model taking the total to 50.
The laundry industry is in the cusp of a change. It is now where beauty salon industry was 10 years ago. The organised laundry market size in India is around Rs.5,200 crore as per KPMG study, R.Balachandar, founder and CEO, told reporters here Saturday.
He said while most of the corporates in this segment are regional players, Laundry Project India will plans to have a national play.
According to Balachandar, the company will be investing around Rs.2 crore each in the NCR and Pune projects with a washing capacity of four-five tonne a day.
In Chennai we will be setting up another unit at a similar outlay, he added.
Laundry Project India is also looking at the leasing of hotel linen and corporate uniform segment as they are sunrise segments.
Overseas the hotels take on lease their linen. That model is not present in India now but would begin soon. Now hotels outsource their laundry services, Balachandar said.
According to him, talks are on with a large hotel chain for the new business division and funding will be made based on the contracts.
Similarly leasing of corporate uniforms is another segment that offers good potential and a foreign company is doing around Rs.100 crore turnover in this segment in a short period of time, he remarked.