L'oreal sets Rs 7,000 cr sales target in India by 2020
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Bullish about the growth of beauty market in India, French cosmetics giant L'oreal is eyeing nearly Rs 7,000-crore revenue by 2020 and has planned an investment of Rs 970 crore to help achieve this target.
"We have set a target of achieving Rs 7,000 crore in sales by 2020 and we are taking steps in that direction. We want to provide localised products to suit the needs of our customers here.
"For this, we have plan to invest more to bring in latest technology and innovation," L'oreal Chairperson and Chief Executive Jean-Paul Agon told reporters here today.
As of 2012, the company had revenue of Rs 1,580 crore and has been said to be growing at 30 per cent per annum in the past one decade. The firm has a product development facility in Mumbai and a research centre in Bangalore.
"We had already planned an investment of Rs 970 crore here during the period beginning 2011 through 2016. This will be used for developing new technologies, opening manufacturing centres as well as expanding the existing facility in Pune and also for introducing new products," he said.
The research centre will serve to accelerate growth of innovative products tailored for the domestic market and help the company to reach its sales target and 150 million consumers by 2020, Agon said.
Asked whether L'oreal is looking at acquiring local brands, Agon said, "we already have 15 brands here but we are always interested in acquiring Indian brands.
"We have no such plans on the board as of now but we are open for talks if any Indian company would like to partner with us. Since we have a large portfolio, we can also do business organically."
By introducing localised products, the company is looking at targeting the middle of pyramid. "We have been focusing on the top of the pyramid. But by getting in more innovative and localised products, we can target the middle class segment of the society which is increasingly becoming beauty and healthcare conscious," Agon added.