L’Oréal, a cosmetic company, is setting up one of its biggest Global Capability Centres (GCC) in Hyderabad, as per news reports. The proposed centre, distinct from the company’s existing research facilities in Mumbai and Bengaluru, will support global technology, innovation and research mandates for the French giant. L’Oréal has started searching for senior leadership for the hub, including candidates from its Paris headquarters. The project was among the top agenda items during a visit by the company’s global board to India last month, led by CEO Nicolas Hieronimus.
French cosmetic giant expands India footprint
L’Oréal, which owns Garnier and Maybelline, currently operates three major research hubs in France and regional centres across the US, Japan, China, Brazil, South Africa and India. The Hyderabad expansion underscores the company’s growing focus on the Indian market. In July, it appointed Jacques Lebel as India country manager, replacing Aseem Kaushik. Lebel has previously held senior roles at L’Oréal and at consumer goods companies such as Procter & Gamble and AB InBev.
The push comes even as L’Oréal India’s growth moderated to 5% in FY25, compared with 14% in the previous year and 30% in the two years before that, amid rising competition from youth-led direct-to-consumer brands.
Hyderabad chosen for global capability centre
The company holds about an 8% share of India’s face-care market, far behind category leader Hindustan Unilever, which controls over 40%. India contributes just over 1% of L’Oréal’s annual sales, more than Rs 41 billion, making it the firm’s 15th-largest market globally. L’Oréal expects India to break into its top 10 markets in the next few years, with revenue projected to reach Rs 1 billion annually.
GCCs are offshore hubs that consist of the company’s critical technology, analytics, finance, supply chain, operations and R&D functions. Over the years, companies have increasingly preferred GCCs over outsourcing due to control and access to high-quality talent. India, as a country, has emerged as one of the top GCC destinations.