L'Oreal looking for acquisitions in the Indian cosmetics market: Report

The Indian arm of L'Oreal, the biggest cosmetics company in the world, is looking for acquisition opportunities in the Indian market, a company executive told Mint, as the demand for skin and beauty products rises in the country.

The company hopes to widen its product range and collaborate with local companies that sell unique products. Its current portfolio has Maybelline, NYX, Garnier and L'Oreal Professional.

"What is of great interest to us is skin and make-up. These are two areas that are still nascent in India, where we believe there are a lot of opportunities," said Amit Jain, who heads the local business of L'Oreal. Without divulging any details, he said the company was in talks with some Indian companies.

L'Oreal has a variety of products from global brands, but it wants to make something specifically for its Indian customers. "We are looking for good strong formulations for Indian consumers and high-quality manufacturing. For us, it is also about getting in products that are close to the Indian consumers both from a brand and product type," Jain said.

India's beauty and personal care market was valued at Rs 97,100 crore in 2018. Of this, coloured cosmetics are worth Rs 8,000 crore and are expected to grow at an average rate of 17.4 percent through 2022. Meanwhile, skincare is at Rs 12,500 crore, expected to grow at 10.4 percent, according to data. The overall market will grow at 10 percent in the next four years.

This growth can be attributed to India's booming youth population, accentuated by the smartphone generation's need to keep up with the global fashion trends and demand for a variety at a lower price. Fashion e-tailers like Nykaa and Amazon have further pushed the growth of this market.

Over the years, L'Oreal has acquired many brands like The Body Shop, Vicky, Kiehl's, Shu Uemura, Maybelline and Urban Decay to build a massive business. The French company had entered India in 1994. Its business in India is trailing behind FMCG major Hindustan Unilever.