Pune, Aug 25: After six years in cosmetic business, Modi-Revlon is set to achieve break-even by the year-end. Modi-Revlon is a 74:26 joint venture between UK Modi group's Modi Mundipharma and Revlon of USA and focusses on the colour cosmetic business. Last year, Modi-Revlon grew by 85 per cent to reach turnover of Rs 45 crore and the company expects to achieve around 30 per cent growth this year.The company is changing its strategy and taking a serious look at the mass segment, instead of focusing solely on the premium segment. The Mini strategy is expected to expand the market and drive volumes. The company has an 80 per cent share in the premium segment and is eyeing growth in the mass market segment.
Surveys indicate that the market is growing at a faster pace in the non-metro regions; hence the mini-range of Revlon products. The company has already met with success with its Mini nail enamel. Mini packs are driving the distribution, so the number of distribution outlets were being doubled to 14,000, Bhandari said. Another product in the Revlon Mini range, the Mini Lipstick, was launched in Pune on Friday.
According to Modi-Revlon color cosmetics marketing manaer Bhandari, remaining in the premium segment will make survival impossible. "Modi-Revlon is addressing this mass market with the launch of new products or `mini packs' exclusively for the Indian market," Bhandari said.
The company is also slated to launch India-specific colour shades in its colour cosmetic range. Prerna Anand, senior assistant marketing manager, premium products, said this was being done by Revlon for the first time. The company will be coming out with five India-specific shades and the prices are being reduced from Rs 249 to Rs 219.
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