L'Oreal and Indian herbal skin-care company Lotus Herbals may enter into JV to target 70B Indian rupee beauty salon industry in India
January 23, 2012
– L’Oreal S.A. may enter into a joint venture with herbal skin-care company Lotus Herbals to target the 70 billion Indian rupee (US$1.4 billion) beauty salon industry in India, the India Times reported on Jan. 23.
Discussions between the companies are in preliminary stages, and both companies declined to comment on the potential joint venture.
Lotus Herbals has a portfolio of 250 products and is growing 35%-40% annually. Lotus is a zero-debt company valued at approximately 2 billion Indian rupees.
According to Debashish Mukherjee, partner and VP at consulting firm A T Kearney, India’s beauty salon business is growing at a rate of 35% annually.
Although L’Oreal hopes India is one of its top six markets by the end of the decade, India currently only accounts for 1% of L’Oreal’s annual sales.
The primary source of this article is India Times, Mumbai, India, on Jan. 23, 2012.