French makeup and cosmetics maker L’Oreal is on an aggressive expansion mode in India. According to the global team, India is set to become the sixth largest market by 2020. The company plans to achieve this by growing both organically and through acquisitions.
“The beauty market in India is one of the fastest growth stories globally. We are committed to this market and are open for acquisition. This can be in any category or segment," said Jean Paul Agon, Chairman, L'Oreal Paris.
The beauty product maker is ramping up its operation in the Indian market by focusing more on innovation and increasing in distribution channels, Agon said the company would be investing close to Rs 1,000 crore in the next three years to open more manufacturing units, innovation and research centres, and launch ‘tailored-made’ products for Indian consumers.
L’Oreal has already launched several India-inspired products such as modern creme hair color, fairness creams for men, anti-ageing creams, and other India specific products like shampoo with oil and kajal in brands such as L’Oreal, Maybelline and Garnier.
Research & innovation centre
The Paris-headquartered company that has been in India for nearly two decades, boasts of a growth rate of above 20 per cent, and has clocked sales of Rs 1,580 crore last year. The company says that it aims to reach 150 million Indian consumers by 2020.
Meanwhile, as part of its attempts to accelerate innovations for the Indian market, L’Oreal inaugurated its new research and innovation (R&I) centre in Mumbai to study Indian hair and skin specificities. The company plans to open a research hub in Bangalore by mid-April.
Luxury cosmetics
The company has said that it will focus on a new range of ayurvedic cosmetics. L’Oreal India’s Managing Director Pierre-Yves Arzel told Business Line that the company is also looking to bring other luxury products from the L’Oreal’s basket into the Indian market. The company has already set up five such boutique outlets called Kiehl’s in Mumbai, Delhi and Bangalore.
“We are testing the luxury cosmetic market at this moment and will open more such stores. We will also look at entering the online luxury retail soon,” he added.
The Indian luxury market, though niche and small, is growing fast with players such as Mac, Lancome, Clinique and Estee Lauder, trying to grab a substantial market share.
priyanka.pani@thehindu.co.in