L'Oreal eyes $1.3 billion in India sales by 2020

MUMBAI Thu Jan 10, 2013 7:59pm IST

A woman looks at L'Oreal cosmetics in the shop in Riga April 13, 2012. REUTERS/Ints Kalnins

A woman looks at L'Oreal cosmetics in the shop in Riga April 13, 2012.

Credit: Reuters/Ints Kalnins

Related Topics

Stocks

   
Inside the Peshawar school

Inside the Peshawar school

The aftermath inside the Pakistan school where at least 132 students and nine staff members were killed by Taliban gunmen.  Pictures 

MUMBAI (Reuters) - L'Oreal(OREP.PA), the world's biggest cosmetics group, plans to quadruple sales over the next seven years in India, the fastest-growing beauty market in the world.

The company, which opened a research centre in Mumbai on Thursday to develop products specifically for Indian consumers, aims to grow sales to 70 billion rupees by 2020, its chief executive Jean-Paul Agon said.

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 percent every year in the country.

The French company, which sells shampoos and cosmetics under brands such as L'Oreal Paris, Garnier and Maybelline New York, had earlier said it planned to invest 9.7 billion rupees in India from 2011 through 2016.

"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," Jochen Zaumseil, executive vice-president, Asia-Pacific, told Reuters.

L'Oreal, which has only 8 percent market share in India and faces tough competition from the likes of Hindustan Unilever and Procter and Gamble, said it is open to acquiring strong regional brands but is focusing on growing the business organically.

India contributes between 1 and 2 percent of the company's global revenue but is strategically one of its top five markets, Agon said.

(Reporting by Nandita Bose; Editing by David Holmes)

FILED UNDER:

Economy

REUTERS SHOWCASE

Global Economy

Global Economy

EU leaders agree investment package to boost economy.  Full Article 

Oil Prices

Oil Prices

Brent steady below $60, heads for 4th weekly decline as oversupply persists.  Full Article 

Chinese Economy

Chinese Economy

China revises up size of economy in 2013 by 3.4 percent.  Full Article 

Reuters Exclusive

Reuters Exclusive

Google aiming to go straight into car with next Android – sources.  Full Article 

Reuters Poll

Reuters Poll

BSE Sensex to hit 32,980 by December 2015  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device  Full Coverage