L'Oreal India will work on new molecules and develop products for the Indian market. The French cosmetics giant, which has a 250-million-unit manufacturing plant at Pune will invest Rs 500 crore this year in an R&D centre in Mumbai and an advanced research centre in Bangalore, said Mr Dinesh Dayal, COO.
Backed by a 30 per cent year-on-year sales growth, it aims to double production capacity at the Pune factory.
The beauty products company operates through four business channels with 14 brands in India. Its consumer products business, comprising brands such as Garnier, L'Oreal and Maybelline, contributes 80 per cent to its annual revenues. The company recorded revenues of about Rs 1,300 crore in last fiscal.
The company has trained 80,000 hairdressers across 30,000 salons. The contribution of the luxury products division, which has brands such as Lancome, Diesel, Ralph Lauren and YSL, is just about one per cent compared with the global 30 per cent, Mr Dayal said.
L'Oreal also has an active cosmetics range sold through pharmacies, which is yet to grow in India, he added.
Garnier is currently the largest brand for the company in India, contributing 60 per cent of its annual revenues. “We want to grow the L'Oreal brand, but not at the cost of our other brands. Different price point strategy suits a heterogeneous market like India,” Mr Dayal said.