French cosmetics firm L’Oreal and Indian herbal skincare products
maker Lotus Herbals are said to be considering a joint venture to establish a strong hold in the Rs 7,000-crores beauty salon industry in India. If the talks get through, Lotus Herbals’ portfolio having 250 products including skin whitening cream, color cosmetics and hair care may achieve good prospects in the international markets with a strong partner like L’Oreal. And L’Oreal would get an opportunity to offer better deals to salon owners with Lotus products under its belt.
Lotus is registering a growth of 35-40 per cent per annum and enjoys a major share of the Indian market. Many international and domestic biggies have expressed their desire to acquire stake in the company but the owners do not want to sell. L’Oreal wants India to be one of its top six markets worldwide and reach 200 million consumers in the country by the end of this decade. India currently accounts for less than 1 per cent of company’s annual sales of more than 20 billion pounds, or approximately Rs 1.3 lakh crores.
According to research firm AT Kearney, the beauty salon business in the country is growing 35 per cent a year and it is one of the booming segments in India.