New Delhi: French cosmetic maker L'Oréal SA says it remains committed to its Rs 1,000 crore investment in India, which the company has planned from 2011 to 2016, seeking a bigger presence in the country, chairman and chief executive Jean-Paul Agon had said.
L'Oréal India Pvt. Ltd, a wholly-owned unit of the the €20.34 billion L'Oréal Groupe, will invest the money in expanding its supply chain, reinforcing production facilities and funding research and innovation in India, Agon said.
L'Oreal India aims to make 150 million consumers in India and to grow its sales to a whopping Rs 7 billion by 2020. To achieve this target, company will invest Rs 1 billion rupees in the country in coming five years.
While talking to reporters Dinesh Dayal, COO L'Oreal India said, “L'Oreal's topline growth was at 16% and is currently ranked 16th amongst L'Oreal countries. The mass market will remain L'Oreal India's main engine of growth this year.”
"Out of the 66 shades of skin colour found in this world, more than 40 are found in India. That's an example of how varied and complex the requirements of this market are," said Jochen Zaumseil, executive vice-president, Asia-Pacific
Rising demand for quality and high-end beauty products among India's emerging middle class is expected to help L'Oreal grow by more than 20 per cent every year in the country.
It must be noted that only 10 per cent of L'Óreal products are imported, and the rest are made in India only. The company has its manufacturing plant at Chakanpura, Pune and Baddi in Solan district of Himachal Pradesh. To cater to Indian needs has opened two R &D labs at Mumbai and Bangalore.
Dayal also said, “L'Óreal has registered its presence in more than 8 lakh retail shops across the country. We are making inroads in Tier- III cities. We are segmenting our products to further broaden our reach.”
