Making laundry a white-collar business

Spotting potential in the tech-based model, some young entrepreneurs have established new-age laundries in the city and are eyeing other centres in the country

Nagpur: The launch of a tech-based laundry business by Big Basket co-founder Abhinay Choudhary may mark the entry of organized players in one more business catering to daily needs of households.

Choudhary’s new venture made headlines last week. Some young entrepreneurs from the city have already spotted the potential in the white-collar business in laundries. In the business for some time, they are now on expansion drive, they told TOI.

Over the last four years, five players have established new-age laundries in the city and are eyeing other centres in the country now.

As against the doorstep pick-up and delivery by traditional dhobhis, many who may have been serving homes for generations, the new entrants have apps to book a wash or iron clothes. Orders can be placed over phone too. Owners of these laundries say they are banking on accountability, a standard process and trackability of the orders. Their outlets can be seen around the city’s market places. Each one have their own system of machines and a distinct formula for detergent. The washing machines have capacity to handle higher load than the models meant for domestic use.

Rajesh Naidu, who launched LaundryEzy in 2019, said over the last three years he has started outlets in Nagpur and Bhopal, and one in Thane. New outlets are set to open in Pune, apart from smaller towns like Wardha, Amravati and Akola.

Naidu, who earlier handled marketing assignments in the television industry, saw a huge demand-supply gap in the washing business. More so there was scope for an organized player, he says. “Nagpur has over 1,000 presswallahs, and 8 lakh households. So, even if 20% of these homes provide business to new laundries it turns out to be a big deal,” says Naidu, who is also looking to open new outlets in different cities on franchisee basis.

“The USP is accountability for damage, and we are also working on Google routing of the riders who take deliveries,” he says.

Prakhar Pincha came up with a WECO outlet in 2017. He is among the first to start a new-age laundry in Nagpur. WECO provides an eco-friendly alternative to the conventional dry cleaning, he says.

“Conventional dry cleaning uses a number of chemicals like white petrol, which is not preferred in a number of advanced countries. What we do is called soft wash, which does not involve use of any harmful chemicals,” says Pincha.

WECO provides dry cleaning and steam ironing services. The business has seen yearly 15% to 20% growth. There are plans to start an outlet in Indore too, he says.

Chirayu Agrawal, who also started JustClean in 2017, said their USP is transparency. “A client can see the entire process which the garment goes through. We have a see through glass through which the work can be seen,” he says.

Agrawal, who is 25, said it began with plans to venture into a new business. “Starting a restaurant was also a choice, but the city has a high ratio of new joints shutting down. A modern laundry was not a beaten path,” he says.

Prashant Nair, who used to work as an executive in Mumbai, observed that both salons and ironing shops in the bylane remained opened till late in the night. This showed that there was much work, he says.

“When I returned I opened a salon and also a laundry in Nagpur. Initially, it took time for people to get accustomed to online booking or through calls, so we had drop and pick-up outlets in the city. Now, as the system has been streamlined we operate through a single unit at Hingna. Delivery and take-away happens at client’s doorstep,” says Nair.

Nair’s clients include businesses like hospitals and hotels.

Nagpur has yet another chain Tumbledry, which operates from Delhi and orders can be booked over the phone or through an app.

“The automated laundry would certainly have advantage over the unorganized sector. This remains a niche segment due to the process and machines involved. More players are likely to join the bandwagon but after a stage there would be a limit for fresh entrants,” says Sanjay Arora, marketing and advertisement expert.

Start-up mentor Deepak Menaria says the new-age laundries would get wider acceptability if they are able to maintain reliability and stick to time. However, they should also use persons traditionally engaged in this business. It would bring a mix of technology and traditional skills, he says.