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Mumbai, Mar 23: L’Oreal Group, the world’s second largest cosmetics major is planning to foray into the Rs 1,000-crore Indian herbal and ayurvedic cosmetics industry. L’Oreal India, the Indian arm of the group is currently in talks with Biotique India and VLCC Personal Care Ltd to acquire these home-grown herbal and ayurvedic brands, key industry sources said.
According to industry sources, the L’Oreal Group has been scouting for herbal & ayurvedic cosmetics brands in India for quite some time. “After identifying its targets, Loreal India is in advanced talks with Biotique and VLCC to acquire herbal/ayurvedic cosmetics brands. The group is taking the acquisition route to enter this niche sector,” added sources.
When contacted, a spokesperson from L’Oreal India declined to comment on the company’s acquisition plans. Sandeep Ahuja, CEO , VLCC Personal Care Ltd, was also reluctant to comment on VLCC’s future plans.
Recognising the growing demand for herbal & ayurvedic products across the globe, cosmetics majors are now eager to enter this sector, according to industry analysts. At present, the major players in the branded herbal and ayurvedic sector include, Dabur India, Hindustan Lever Ltd, Emami Ltd among others. “This sector is expected to register a 30 % growth this year with the entry of new players. Last year, the sector clocked 20%,” an analyst said.
Meanwhile, VLCC Personal Care Ltd is setting up a new plant in Dehradun to manufacture its skin care and hair care products.
“We are scouting for brand acquisitions in India to beef up our portfolio. In fact, we are looking at regional brands to broaden our portfolio and widen our distribution network,” Ahuja said.
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