Estee Lauder's stake in Indian firm to boost cosmetic sector

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In a move expected to significantly impact the luxury end of the Indian cosmetics sector, one of the world’s leading manufacturers of beauty products, Estée Lauder, has bought a minority stake in India’s leading premium brand, Forest Essentials.

The two companies, Estée Lauder and Forest Essentials, will have a strategic tie-up, with the global giant facilitating the expansion of the Indian partner domestically, as well as abroad, when it becomes a part of the $7 billion Estée Lauder companies (ELC).

“To take the operations of the company to the next stage and grow vertically, we need to go through this route,” Mira Kulkarni, CEO, said during the announcement of the tie up, in New York on Saturday. Market estimates indicate the current size of India’s cosmetic and toiletries market at approximately $950 million and growing at about 25% pa.

“Forest Essentials gives us a stronger presence in the rapidly expanding beauty market in India,” said William P Lauder, CEO, ELC.