Skincare products maker Lotus Herbals is looking at entering the men’s grooming segment as part of its expansion strategy in the next two years, a top company official has said.

“The men’s grooming products is a fast growing and interesting market to be in. We have been researching a lot about it but have not yet taken a view on it. It will take about two years but we will definitely get into it,” Lotus Herbals director Nitin Passi told PTI here.

According to Technopak, the men’s grooming market is estimated to be close to Rs 3,000 crore last fiscal.

“Grooming is becoming very critical for people. The beauty industry is growing at 18-20 percent but we are growing faster than that, driven by higher sales in small towns. Our plans in the next 12 months will be to penetrate into the market more.

So, we will be entering new cities and towns with new product offerings,” Passi said. He said the Noida-based firm expects tier 2 and 3 towns to contribute half of the revenue by next year.

“There is lot of demand in small towns. We are seeing higher growth there than in major urban markets. Our urban markets contribute over 60 percent of the turnover and the rest from other areas which are growing faster. We hope to make it 50-50 by next year,” he said.

The company, which sells various skincare and cosmetics products under the Lotus label, had a turnover of Rs 175 crore last fiscal and has been growing at 35 per cent.

On capacity expansion Passi said, “We plan to increase the capacity by minimum 50 per cent every year. Right now we are doing 1 lakh units a day. We have to grow at 40 per cent every year so we are looking at 10-15 crore unit capacity every year. We will have a new factory as well. It is going to be a large plant”.

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