FMCG major CavinKare is in the process of raising funds through dilution of about 10 per cent stake, for about Rs 350 crore to augment additional capacity expansion plans, a top company official said today.

“We are in process of it (of raising funds). We are looking at 10 per cent stake (dilution) for about Rs 350 crore…”, CavinKare Ltd Chairman and Managing Director C K Ranganathan told reporters here.

He said the company was looking for an capacity expansion plan at its existing facility and would be required to make a “three digit” investment for it. “Everything I will inform you in May, when it is concrete…”, he said.

Besides, the company which forayed into the hospitality business by launching restaurants under — “Vegnation”, has exited from it, Ranganathan said.

“We have exited from that business. I think we had too many (products) in our hands and we were not able to make any margins from it (the business). We exited about a month ago”.

The company was having about three Vegnation restaurants in Chennai.

Ranganathan and top officials were here to announce the expansion of the company’s salon business — Green Trends, which it was operating under a different division — Trends in Vogue.

Ranganathan said the company plans to expand its “Green Trends” and “Limelite” range of beauty salons to 350 branches across the country by 2015 at an investment of about Rs 80 crore for setting up its own parlours.

Stating that the hair and beauty salon industry was valued about Rs 7,000 crore, he said the company grew by 32 per cent year-on-year and “planned to invest about Rs 80 crore in next two years for setting up the salons”.

He did not rule out the possibility of acquiring any existing beauty salon, saying “we will not shy away from it”.

He said the firm would also open the beauty salons through franchise models apart from having its own outlets.

Giving a break up of the proposed expansion plans, he said, “from the 350 outlets, 75 will be of Limelite range of salons. Focus will be on opening Lime Lite range of salons in metros while Green Trends in other areas”.

Currently, Trends in Vogue has about 110 outlets. The division contributes about Rs 50 crore to the group company — CavinKare, and Ranganathan said they expect the revenue to reach about Rs 120 crore by 2015