VAULT SALON & SPA EXPANDS INTO INDIA

Date: July 01, 2006
Posted At: The Indo-Canadian Telegram
By: Ashoke Dasgupta

Although Winnipeg's Vault Salon and Spa expects to open two salons in Chennai later this fall, Brandy O'Reilly, Vice President of the Jorgenson Group of Companies' (JGC) Beauty and Wellness Division, says that this is just the beginning of a major expansion for the company.

"We're considering a third Indian location in Mumbai, as well as 14 more locations in that country over the next 18 months in other cities, including Kolkata and Delhi", she said.

The salon's owner, Daren Jorgenson, who is also the founder of the Jorgenson Group of Companies, a company whose revenues exceed $350 million annually, accompanied the Doer Trade Mission to India last February. A Jorgenson company, Canadameds.com, has already had partners in Chennai since around 2004, thus the expansion is made easier by the pre-established connections.

"We started with 'Business Process Outsourcing' in India two years ago, then added software design and development for our clinics," said Rupinder Brar, president of the JGC. "On meeting with the salon industry in February and researching its major players and market shares, we saw that North American companies have a very small presence in India. Over 350 million people in India are under 15 years of age, and the middle class is growing swiftly, so we decided to partner with the Taj Hotel Group for a first salon", he added.

Indian business has secured a place in the world economy that is expected to grow because it boasts economic growth of six to eight percent, and has produced numerous world-class companies. As Indian firms expand overseas, foreign companies are expanding into India. Indian roads, airports, electricity and rural literacy need considerable work and 67 per cent of Indians live in rural areas. Nevertheless, there exists a consuming class of about 150 million, quite an enticement for business.

The first salon is slated to open in the Taj Coromandel Hotel in Chennai and will be staffed by local Indian personnel as well as some Canadians from the Winnipeg location. "It'll be great to give our Canadian staff the opportunity to work there too," exclaims O'Reilly. "Though there may be similarities as well as differences in Indian women's beauty needs, we'll bring a new edge to the process by having guest artists in from Canada."

Chennai is India's fourth-largest city and the 36th-largest city in the world. It is also the capital of Tamil Nadu state. About 350 years old and located on the Bay of Bengal's Coromandel Coast, Chennai is a large commercial and industrial city, well known for its cultural heritage and temple architecture. It is also called the Detroit of South Asia because nearly 40 percent of auto-related industries have a base there. The city has diversified economically through IT and financial services, hardware manufacturing, petrochemicals, textiles and apparel.