India’s Rs 50,000 crore (source: mordor intelligence) hair care market is at a crossroads, with legacy brands and direct-to-consumer (D2C) newcomers vying for dominance. While established players like Garnier, Livon, L’Oréal, Matrix, and others continue to rely on trust, a growing demand for personalisation and innovation has paved the way for agile challengers. Hygienic Research Institute Pvt Ltd (HRI) claims to be strategically expanding its portfolio in this shifting landscape. The company aims to strengthen its market presence by capitalising on the long-established legacy of Vasmol, while focusing on Streax and Streax Professional to meet the evolving preferences of modern consumers. By segmenting its offerings and targeting distinct demographic groups, the company claims to be positioning itself to cater to a wide array of consumer needs in a highly competitive market. Hair care market in India is projected to generate a revenue of $3.06 billion in 2024, as per market research firm Statista . The market is expected to experience an annual growth rate of 3.13% from 2024 to 2029 (CAGR 2024-2029).
HRI’s revenue from operations rose 11.11% to Rs 742.92 crore in FY24 from Rs 668.60 crore in FY23, as per regulatory filings assessed by Tofler. Its net profit rose 49.24% to Rs 69.50 crore in FY24 from Rs 46.53 crore in FY23.
In a conversation with BrandWagon Online, Dheeraj Arora, MD and CEO, HRIPL, talks about the company’s transition from a family-owned business to a fully professional organisation with investments from Premji Invest, strategy to cater to a modern audience and the focus on sustaining profitability, among others. (Edited Excerpts)
With the rise of D2C brands and innovation by established players in the hair care market, how competitive has your company been over the last five years, and what market share do you hold in India?
Seven years ago, the organisation was a one-brand, one-category-dominant company, Vasmol as a brand, only and only focused on hair colour. Fast forward to today, we now have three big brands—Vasmol, Streax, and Streax Professional—all of them almost equal in size and now operating across hair colour and hair care in the retail segments, as well as in the professional segments with hair colour, hair care, texture, styling, and more.
During this period of the last five to seven years, we have garnered market leadership in the serum segment. Not many know that we are value-based market leaders in serums, competing against the likes of Livon, Tresemmé, L’Oréal, and Matrix, holding upwards of a 30% share in that segment. Additionally, we have gained market leadership in shampoo hair colour in the Northeast and West regions. Shampoo hair colour was an innovative category we entered early on, and it particularly took off during COVID-19 when DIY (do-it-yourself) solutions became popular as everyone was experimenting at home. Today, we hold market leadership in three out of four regions in the country in this segment.
On the professional side, we have been expanding our portfolio. Starting from hair colour, we ventured into hair care with shampoos, conditioners, and sit-ups. We then added texture products like straightening and smoothing solutions and styling products. Within hair colour, our Streax Professional brand now offers one of the largest portfolios of fashion shades and highlights. Recently, we introduced a packaging refresh, which has received accolades. Our professional range includes high-lift colours and the ‘Funky’ sub-brand featuring vibrant purples, blues, reds, and oranges, which are increasingly popular among young women.
These innovations across both retail and professional segments have been key to our growth and success over the years.
In the past year, we’ve introduced several innovative products that I’m particularly proud of. One of our key launches was a gel hair colour enriched with Kiwi extracts, hyaluronic, and silicon actives, which we brought to market just last month. This product offers a unique format with great performance and experience. In the e-commerce space, we launched a heat protection product that recently topped Amazon rankings. Another standout innovation was our tube-within-tube shampoo packaging—the first of its kind in India—designed exclusively for online platforms. Alongside this, we introduced Streax Shine shampoos and are now launching a coconut variant of Vasmol Kesh Kala, a significant update for a brand that has been in the market for nearly 60 years.
We’ve also been busy with new entries in the shampoo hair colour segment, targeting North, East, and West India, and we’ve made a competitive entry into the South at an aggressive price point. Beyond these launches, we’re actively expanding within the hair care category, exploring new sub-segments, and even venturing into entirely new categories. It’s an exciting time as we continue to innovate and meet the evolving needs of our consumers.
How has the shift from a family-run business to a professionally managed organisation under Premji Invest impacted the company’s decision-making agility, brand ethos, and long-term strategy?
We’ve come a long way from being a one-brand, one-segment organisation to now operating across multiple brands and segments, with aspirations to grow into a full-fledged hair care brand and eventually a comprehensive beauty and personal care brand. The turning point came about seven to eight years ago when Premji Invest (PI Group) made its initial investment in our company. They later doubled down on their investment, becoming the majority stakeholder by the end of 2022.
This transition marked a significant evolution for our organisation. As the family stepped back, Premji Invest brought in a professional leadership structure, beginning with my appointment and the formation of a dedicated leadership team. The journey has not just been about brand expansion but also about transforming from a family-owned and family-run business to a professionally managed entity with strategic vision and scale.
With the brand’s origins rooted in the offline space and the growing prominence of online channels, how are you balancing these distribution platforms, and which channel currently drives the majority of your sales and growth strategy?
If we look at the market construct in the retail space, more than 95% of the market is still offline. This is the foundation I’m talking about. Even with our size, we have a very strong market presence. Currently, we directly service over 400,000 stores every month. We have a large offline footprint and offline continues to be a vital channel for us, both now and in the future.
That said, if we go back two to three years, we didn’t have a strong presence in modern trade and e-commerce. However, in the past two to three years, we have significantly enhanced our capabilities in these areas. We’ve almost tripled our business in these channels, which I see as the future of retail.
For our retail business, modern trade and e-commerce now account for close to 10% of our total business, which is either in line with or ahead of the overall market contributions. In contrast, for our professional business, modern trade and e-commerce are not the right channels due to their B2C structure.
Which marketing channel do you rely on the most, and given that the competition is increasingly focusing on online segments, how do you see the balance, especially since your advertising currently leans more towards conventional channels like TV and print?
As you rightly said, our base marketing has traditionally relied on conventional channels like TV and print. However, in the past two to three years, we’ve significantly evolved. During this time, we’ve doubled our media spending. For us, media isn’t limited to TV and print—it also includes our extensive efforts in building relationships within the salon fraternity. This involves on-ground activations like mega shows, seminars, conferences, and participation in various beauty events, where we’ve been particularly aggressive.
In addition to these traditional channels, we’ve stepped up significantly in digital and social marketing, along with brand-building investments on e-commerce platforms. In fact, within the last two to three years, our digital and social marketing spend has grown from almost negligible to 20% of our overall budget. This includes organic and inorganic searches on platforms like Google, leveraging the Meta ecosystem, and working extensively with e-commerce platforms to create A+ content, deploy searches, and run banner ads and other promotional activities.
Recently, we’ve established a dedicated digital marketing team and onboarded experts to strengthen our presence in the digital space. This includes influencer marketing, which we approach in two ways. For our salon business, we target stylists and salon professionals by working with industry experts to demonstrate the latest trends, collections, and techniques for both commercial and occasional looks. While this may not be visible to the average consumer, it’s highly impactful within the professional community.
For our consumer portfolio, we are increasingly focusing on platforms like Google, YouTube, and social media within the Meta ecosystem. We also invest in influencer marketing for this segment. For instance, during our recent gel launch, we collaborated with influencers and specialists to engage directly with consumers. These efforts underline our commitment to building a robust digital presence while continuing to maintain our strength in traditional marketing channels.
Given that your three brands—Vasmol, Streax, and Streax Professional—operate within the same category, how do they differ in terms of products and target audiences?
Vasmol is a legacy brand with over 60 years in the market, primarily catering to grey coverage. Its flagship product, Super Vasmol Kesh Kala, is unique due to its oil-based formulation, which doesn’t require a chemical developer. Instead, it uses natural oxygen for oxidation, making it safe and highly trusted. With a 99% market share in its segment, Vasmol is particularly popular in tier two and tier three towns, among consumers over 40 seeking grey coverage.
Streax, on the other hand, is a more fashion-forward brand, offering a wide range of trendy shades in addition to grey coverage. It targets a younger demographic, from 15 to 40 years old, with products like highlights, fashion shades, and grey coverage. Streax is known for its chic, youthful image, providing affordable, high-quality products, including its popular serum priced at Rs 260 for 90ml.
Streax Professional, designed for in-salon use, offers products for colour, texture, and care services. It stands out by offering both professional and consumer products under one umbrella, which enhances credibility and appeal.
Together, Vasmol and Streax cater to different market segments: Vasmol focuses on traditional, safe grey coverage, while Streax offers modern, fashion-forward options across various consumer groups.
How does your brand view the growing consumer spending in the premium segment and how it impacts your pricing strategy?
The elasticity of pricing doesn’t impact the top tier of consumers. If the product is truly outstanding, they are willing to pay the right price. This holds across the board, and the top 10% of consumers, who contribute significantly to beauty spending, are key in this regard. As per economic trends, when per capita income increases, spending on beauty typically rises five to ten times. This is particularly evident in urban India, where consumers are willing to spend more on the right products that meet their needs, thanks to their growing disposable income. But we keep our pricing strategy affordable, catering to not just a niche segment but the masses.
How do you view the impact of targeting different market segments and channels, such as salons, e-commerce, and modern trade, on your brand’s overall strategy?
We cater to different segments and market strata with our two brands, Vasmol and Streax. Streax Professional, in particular, has a clear niche and has opened up a new channel of operations. While we have a strong presence in general trade with Vasmol and Streax, reaching around 400,000 stores, we also focus on modern trade and e-commerce, where Streax plays a key role. For these channels, we’re developing exclusive portfolios, including larger SKUs like the 200ml products, which are doing well on e-commerce platforms.
Additionally, we have a third channel—the salon channel. We now service almost 40,000 salons, which is one of the largest footprints in the salon industry, offering direct, regular service to these locations.
A unique feature of our product range is the tube-in-tube format, especially for our shampoo hair colour. This innovative packaging separates the colourant and developer until the time of use, preventing oxidation. This format allows consumers to easily apply the product like a shampoo, providing a quick and efficient experience—colouring hair in just five minutes. This is a highly effective product with a unique packaging design that we are the first to offer in the country.
Out of three, which brand brings in the most revenue?
In the last seven years, all three brands have contributed equally to our growth. Both our professional business and Streax have performed exceptionally well. Over the past two to three years, we’ve seen consistent double-digit growth, and we’ve maintained that momentum this year. This broad-based growth has been seen across modern trade, e-commerce, general trade, and our professional division. Additionally, Vasmol has experienced a turnaround in the past couple of years, with healthy growth as well.
Meanwhile, Streax is performing better than Vasmol, mainly due to the introduction of new formats like serums, shampoos, and colour products, which have seen significant growth. However, Vasmol still holds strong in certain regions. The brand has a high level of consumer loyalty, particularly in East India, Tamil Nadu, and parts of South India. Vasmol is deeply entrenched in these areas, with strong repeat purchase rates. The brand also offers two key products: Vasmol Kesh Kala (oil-based) and Kali Mehendi, a powder variant, which are both well-received across the country.
How did your company perform in FY24, and what are the expectations for FY25, along with your plans and strategy?
We have achieved healthy double-digit growth in our India business. Over the past two years, we’ve made significant investments in human capital, bringing in top talent from the industry. Our management team now includes some of the best professionals in the field. We have also significantly increased our investments in brands, and this, coupled with improved profitability, has led to strong financial performance. Our EBITDA has nearly doubled in the past two years.
For 2025, we expect to continue our healthy double-digit growth, further increase our investments in both people and brands and maintain strong growth in our EBITDA. Our strategy revolves around consistent, profitable, and competitive growth, which we are committed to achieving. We are focused on building an organisation for the future, ensuring sustained success and growth across all aspects of the business.
In the last two years, we’ve made significant advancements in our tech capabilities, including adopting SAP HANA (High-performance Analytic Appliance) and rolling out our DMS (Distributor Management System). We now have 100% of our retail business on DMS and SFA (Sales Force Automation), with all outlets GPS (Global Positioning System) tracked. These investments in technology, shopper marketing, modern trade, e-commerce, and digital marketing have strengthened our capabilities. Digital marketing is now poised for substantial growth.
We’ve also made great strides in innovation, with a considerable number of new products and portfolio updates over the past year. This focus on innovation will continue over the next 6 to 18 months, with a clear roadmap to stay relevant in a market where new products and innovations emerge daily.
