FSN E-Commerce Ventures Ltd, the parent company of Nykaa, has established a new wholly owned subsidiary, Nykaa Essentials Private Ltd, to focus exclusively on the beauty and personal care (BPC) retail segment. From what is understood, this strategic move aligns with Nykaa’s ongoing efforts to expand its footprint in the premium beauty market, catering to the growing demand for high-end cosmetics and skin care products in India.
As per the company’s regulatory filing, Nykaa Essentials has been incorporated with an authorised share capital of Rs 10 crore and a paid-up share capital of Rs 5 lakh. The subsidiary will be involved in trading and distributing a wide range of beauty, skincare, healthcare, and lifestyle products, operating through both e-commerce and physical retail stores.
Nykaa has been aggressively expanding its beauty segment, recording a 27% year-on-year revenue increase in Q3 FY25, with beauty-related earnings reaching Rs 2,060 crore, according to media reports. Its gross merchandise value (GMV) in the category rose 32% to Rs 3,389 crore. The company has also been strengthening its offline presence, launching 200 beauty brands in 2024 and growing its store network to 221 locations, adding 47 new outlets last year, including 12 in the last quarter alone. Notably, a significant portion of sales from Nykaa’s physical stores comes from premium beauty brands, reinforcing the company’s focus on the luxury segment.
Anchit Nayar, Executive Director and CEO of Nykaa’s beauty division emphasised the company’s commitment to premiumisation, stating that rising consumer spending power is expected to drive demand for prestige beauty products. “We are positioning ourselves to capitalise on the growth of luxury beauty in India as more consumers seek high-end products,” he said during the company’s recent earnings call.
Despite fluctuations in its stock performance, Nykaa continues to be a major force in India’s beauty industry. Shares of the company rose by over 2% on March 11, although they remain significantly lower than their initial listing price. The company’s current market capitalisation stands at Rs 47,000 crore.