KOLKATA, 19 JUNE: Global cosmetics and skin care major, L’Oréal, which owns the popular Garnier brand, will invest about Rs 1,000 crore in India in the next five years. This will be apart from the expenditure being made in publicity and marketing. The company will also focus on the eastern region, particularly West Bengal, because this is the fastest growing region for L’Oréal products. Mr Dinesh Dayal, COO, L’Oréal India was here last week to take stock of the present situation.
Part of the present investment will be made in upgrading the company’s first research and development (R&D) centre inaugurated in Mumbai in January this year. The next advanced R&D centre will be in Bangalore. The R&D centres will focus on products specially made for India.
Speaking to The Statesman, Mr Dayal said the company’s existing factory in Pune will be expanded in a big way this year with fresh investments.
"The East is our fastest growing region. Skin care is the largest category here and all our skin care products under the Garnier and L’Oréal Paris umbrella are doing very well in the eastern states." Mr Dayal said: "We are extremely bullish about the East and West Bengal in particular and we have an aggressive sales force to help us attain leadership here."
L’Oréal is doing research on products localised for India. Neem face wash and Indian Kajal are some of the areas of special attention of the company.
"We want to double our sales in the next three years and multiply by four the size of the company between now and 2020 besides servicing 150 million consumers," Mr Dayal said.
With 1.2 billion people, one can’t miss India, which has one of the most fascinating beauty traditions made of traditional, natural ingredients and specific beauty routines, he said.
India is today one of the most dynamic markets in the world for L’Oréal and we project that India will be the 6th largest market worldwide by 2025. As of today the company provides employment to 1,200 people directly and 3,000 people indirectly.
L’Oréal’s India strategy was to first target the top of the pyramid. Now it is time for stage II: going deeper inside the market and reaching the middle-class. And this is where the new R&D centre will play a very prominent role.