Alcome Perfumes and Cosmetics PLC, the Indian subsidiary of Alcome Perfumes and Cosmetics LLC, USA, debuted in the Indian market. For sales, the company has selected Punjab to develop a network of franchisees and direct selling agents.

“We have earmarked a budget of about Rs 100 crore for expansion this year. First we’ll focus on the Punjab region and then expand our network to other states. We plan to have over 10,000 channel partners. The reason for launching our products from Punjab is that any new concept has a wide acceptance in this market. Moreover it is a high-potential market for perfumes and cosmetics,” Sanjeev Nayyar, vice-president of the company told FE.

Alcome Perfumes and Cosmetics, so far, were being manufactured in Noida and Bhiwadi and were being exported to 68 countries. A huge chunk of its exports goes to the US, Europe and the Middle East. After stepping in to the Indian market, it plans to set up a new plant in Noida SEZ. Nayyar added, “We are setting up a new plant with a capacity of producing 4 lakh bottles per day. It is expected to be ready by December 2008. About 30% of the total production will cater to the domestic market. The existing plants(at Noida and Bhiwadi) have a production capacity of 1 lakh and 50,000 bottles per day respectively. As of mow, we have launched 37 fragrances. We plan to introduce about 100 new perfumes every month.”

Alcome plans to involve college students, retired people, housewives and other agents to market their products directly. Ground activities like road shows and fashion shows will also be organised to make people aware of the product.

“We expect a revenue of about Rs 25 crore to be generated from the Indian market in the first year. By July, our cosmetic range will hit the Indian market. It will comprise natural fruit based products. A new manufacturing facility is being put up in USA for producing this skin care cosmetic range that will entail an investment of around Rs 150 crore. With the perfume market growing at a rate of 50% the demand is likely to grow,” said Nayyar.