Indian lifestyle stocks: Marico (Kaya Skin Clinic)

The wellness services industry, encompassing variety of segments like beauty services (salon, treatment based beauty products), personal health counselling, rejuvenation (yoga, spas) and fitness salons, is experiencing growth. The industry is fairly fragmented as the majority of the market is dominated by a number of standalone salons. In such a market, presence of an organised large corporate player like Kaya is likely to garner more revenues than unorganised small players. Kaya Skin Clinic, forms less than 10% of Marico's total business. Till such time as Marico divests this unit into a separate listed company, investors can look at having a small exposure to the combined entity.