Jyothy Laboratories announced the launch its new venture, Fabric Spa, a laundry business set up with an initial cost of Rs 40 crore (Rs 400 million).

The company has established a subsidiary Jyothy Fabricare Services Ltd for the purpose, its Deputy Managing Director Ullas Kamath told reporters in Bangalore on Tuesday. It would provide premium service through Fabric Spa in June.

To begin with, the venture would comprise one main service station, five quick service stations and 25 collection and delivery stations here, he said.

JFSL plans to start operations in Chennai, Hyderabad and Pune, Kamath said. He added the company has already obtained business from various Bangalore-based institutional and corporate clients. Fabric Spa currently washes over 10,000 fabrics daily, he said.

JFSL has already entered the economy market with acquisition of Bangalore-based laundry brand Snoways, which has a customer base of 8,000 with 20 retail outlets.

"JFSL will broadly target three segments -- super premium, premium and economy," Kamath said.