L’Oréal SA is planning to invest Rs. 500 crore in India to finance the setting up of additional factories, laboratories and an innovation centre. The move comes in light of L’Oréal’s decision to make India one of its top six markets, and the company also plans to introduce several brands developed in the country to its other markets.
“Garnier Color Naturals, Matrix oils, a salon specific brand, and Kaajal (eyeliner) are all Indian innovations that we will be soon launching in other countries, especially in South East Asia, because we feel that if its successful in a market like India, it should do well in other emerging countries too,” said Jochen Zaumseil, MD, Asia Pacific Zone, L’Oréal.
Presently, India constitutes less than 1 per cent of L’Oréal’s over euro 20 billion annual sales, and this is soon to change with L’Oréal India hoping to earn close to Rs. 6,300 crore within the next few years. The company plans on flooding the market with both its global brands, as well as locally developed products, in the face of increasing competition from Hindustan Unilever Ltd. (HUL) and Proctor & Gamble. HUL enjoys a monopoly in terms of consumer products in the country, with its sales twenty times that of L’Oréal, while Proctor & Gamble is double its size.
Source: The Economic Times
