MC EXCLUSIVE India is one of Estée Lauder’s most strategic markets, says CFO Akhil Shrivastava

Emerging markets currently make up around 10 percent of our total business, and our goal is to take that to about 15 percent. India is among the largest within this group. It’s now a top four economy and the fastest-growing among the top 25. With a median age of 28, India’s demographic dividend is unmatched.

The beauty segment is expanding faster than GDP - overall beauty has been growing 9-10 percent, prestige beauty 16 percent, and luxury 16 percent. We’ve been present here for over 20 years, long before India became a global hotspot for multinationals. Over that time, we’ve built strong local partnerships with Nykaa, Tira, Shoppers Stop, and Sephora; invested early in Forest Essentials when it had just two stores; and launched initiatives like Beauty & You to nurture homegrown, women-led beauty brands.

We’ve been patient builders. Even after two decades, we believe we’re still in the first innings of a much larger opportunity.

Read More: Estée Lauder doubles down on India as luxury beauty market expands

Q. What kind of investments are you making in India, and over what horizon?

Our investments are focused on building retail, brands, and consumer engagement for the long term. We’re a leading prestige beauty player in this market and are investing across skincare, makeup, fragrance, digital innovation, and omnichannel retail. These are not short-term bets - we’re looking at a 10-year-plus horizon.

We’re expanding distribution, marketing, and visibility through both physical and digital channels. Although we don’t operate company-owned stores, we have freestanding formats through partners like Shoppers Stop and work closely with omni-channel retailers such as Nykaa, Tira, and Sephora. We’re also testing newer platforms like Zepto — because our philosophy is simple: go where the consumer is.

Q. How do you view India’s position compared with other emerging markets and China?

Among emerging markets, India is one of our top priorities - alongside the Middle East, Turkey, South Africa, and parts of Southeast Asia and Latin America. China, of course, is in a different league - it is the world’s second-largest economy at around $18 trillion, and our net sales there is over $2.7 billion.

But the comparison is interesting. In 2003, China’s GDP was $3-4 trillion, which is roughly where India is today. If India sustains 7-8 percent annual growth, it could become a $16 trillion economy in 20 years. Prestige beauty here is less than 10 percent of the total beauty market versus 40-50 percent in developed economies. The headroom is massive.

We’ve been early believers in India’s story. With strong local leadership, retail partnerships, and patient capital, we’re building for the next two decades under our Beauty Reimagined strategy - leading with relevant innovation, investing in brands, and empowering local markets.

Q. What is Estée Lauder’s business model in India, and are you exploring more local partnerships or acquisitions?

India is a wholly owned subsidiary - we went “all in” from the start. In some markets, we rely on distributors, but in India, we wanted direct presence because we always saw it as a long-term growth hub.

Our partnership with Forest Essentials has been one of our most successful. We invested in 2008 when it had just two stores; today it has over 160. Forest Essentials is India’s first homegrown prestige beauty brand, and we’re proud to have supported its growth. We don’t comment on stake changes, but it’s a strong, enduring partnership.

Globally, we’ve built our company through a mix of organic growth and acquisitions - brands like M·A·C, La Mer, Aveda, Deciem, and Tom Ford - each adding a unique edge. While we continue to evaluate new opportunities through our M&A team, our current priority is strengthening the balance sheet and nurturing the local beauty ecosystem through Beauty & You.

Read More: Global beauty firms look to carve up Indian market as 'last bastion' of growth

Q. How do you evaluate potential brand partners or acquisition targets in India?

We start by looking at where the consumer is heading - that’s always the first question. Then we assess portfolio gaps, by category or geography. For example, prestige fragrance is a big opportunity for us.

What we value most is sustainable differentiation - whether it’s in formulation, technology, creativity, or execution. We look for brands with a strong identity and long-term staying power.

India is buzzing with innovation, particularly in prestige beauty. Many young, culturally rooted brands are emerging, and through Beauty & You we’re engaging with them early - not necessarily to acquire them, but to nurture talent, support innovation, and strengthen the ecosystem.

Q. How do you see the regulatory and pricing environment evolving?

India’s business environment is far more transparent and predictable than ever. The GST rationalization - reducing rates on categories like soaps and shampoos to 5 percent - is a positive step. Most of our cosmetics business remains at 18 percent GST rate, but as consumers save elsewhere, their disposable income rises, which benefits the category overall.

We’d welcome faster product registration processes to help bring our full global portfolio to India more quickly. But overall, the direction is constructive.

Affordability and access are equally important. Prestige beauty is just about 9 percent of India’s total beauty and personal care market. We’re working to make it more inclusive - for instance, by introducing a mini version of our hero product, Advanced Night Repair serum, at ₹1,250. Sampling programs are also critical - once consumers try our products, they tend to stay.

Our “price ladder” runs from The Ordinary at entry level, to M·A·C and Clinique in the middle, and luxury fragrances like Kilian Paris at the top. The goal is to offer something for every aspirational consumer.

Q. What’s the long-term roadmap - manufacturing, sourcing, and overall ambition for India?

We have nine global campuses - one in Japan, three in Europe, and five in North America (including the US and Canada) - supported by a large network of third-party manufacturers, including in India. Last Diwali, we even produced a special Estée Lauder product locally.

India is also an important sourcing hub. We currently source more than 50 materials from here, and its role in our supply chain is growing due to competitive costs and a maturing OEM ecosystem.

To the extent that India-sourced materials are exported to the US, tariffs can have some impact, but that doesn’t change our long-term outlook.

Our ambition is simple: if India’s beauty market grows in double digits, we want to grow significantly faster - ideally doubling our business every four years. As the market deepens, we’ll keep an open mind on future opportunities, including potential capital-raising or a local listing, depending on regulatory and strategic considerations.

Q. What shifts are you seeing in Indian consumer behaviour, and how are you adapting to them?

The Indian consumer has evolved dramatically over the past five years. There’s far more awareness around skincare, ingredient transparency, and sustainable choices. Consumers are younger, better informed, and digitally native — they engage with brands online before they ever walk into a store.

We’re seeing beauty becoming a form of self-expression, not just aspiration. That’s why we’re investing heavily in education, sampling, and online content. India is also a mobile-first market, so digital and social commerce are key parts of our growth plan.

Another shift is inclusivity — the idea that luxury beauty should be accessible, relatable, and relevant to Indian skin tones, climates, and cultural preferences. We’re customizing communication, product mixes, and experiences for local consumers while staying true to our global brand DNA.