French beauty, cosmetics, and wellness giant L’Oreal has embarked on a long-term ‘Make in India’ roadmap, driven by the pool of opportunities in the country.
The company, which has been in India for 20 years, claims to be the second largest player in the beauty and wellness segment, with 18 brands across four categories (hair colour, make-up, haircare, and skincare), priced between Rs 3 and Rs 10,000, per product, depending on the range.
“We are already involved in Make in India, wherein we have set up two factories in Pune and Baddi (Himachal Pradesh), with the latter in completion phase. Our Indian facilities produce 90 per cent our range (volume) in the domestic market, which is itself growing considerably,” L’Oreal India Managing Director Jean-Christophe Letellier told Deccan Herald.
The company, which has invested Rs 1,000 crore for the 2011-16 five-year period, plans to expand its R&D capabilities, go-to-market, and distribution channels as well. Presently, there are around 1,500 employees working for L’Oreal India, apart from 150 research scientists. The company’s R&D centres at Bengaluru and Mumbai work in the realms of natural ingredients and green chemistry, among others.
“Our plan in India is to develop further as a transformative company, getting customers to adopt high-quality and safe cosmetics. We have successfully developed certain India-specific products, which have been well-received,” Letellier said.
The value of the Indian beauty, wellness, and cosmetics industry is pegged at Rs 32,500 crore, growing at 9-10 per cent annually. Last year, L’Oreal India logged a turnover of Rs 2,100 crore, with a CAGR of 18-20 per cent.
L’Oreal has also bet big on personal care products for men. “We will continue to develop the men’s grooming market, apart from face and skin care products. Our aim is to get 150 million new consumers over the next few years,” he said. The company is also planning to train 1.5 million beauty stylists by 2020, as part of its sustainability push.
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