Entrepreneur and Artery India CEO Arvind Vijay Mohan recently shared during a podcast how the cosmetics brand Lakme got its name and the role of legendary industrialist JRD Tata in its making.
A video of the story which Mohan shared on Instagram has been doing rounds on other social media platforms as well. In it, he narrates how 12 years after taking over the Tata empire, JRD Tata received a call from the then Prime Minister Jawaharlal Nehru in 1950. "It was a busy day at work when the phone on this gentleman's table rings. This gentleman is JRD Tata.... A familiar friendly voice greets Mr Tata. Except it isn't just any other regular work call. The voice at the other end of that call is of the country's Prime Minister Jawaharlal Nehru. He's called to share a concern," Arvind Vijay Mohan shared.
The "concern" was about the amount of money flowing out of the country when Indian women splurged on imported cosmetics. At that time, India did not have a homemade makeup brand that catered to the weather and the Indian skin tone. Also, quality personal care products of Indian origin were in short supply in post-Independence India and there were very few Indian manufacturers. Hence, Nehru persuaded his close friend, JRD Tata, to set up a company to manufacture cosmetics, and in turn, save foreign exchange.
"Mr Tata gets to work almost right away," Mohan said. "One of his group companies ( Tata Oil Mills Companyaka TOMCO) is involved in the production of coconut oil. He establishes a subsidiary firm linked to this company for supply of the basic raw materials required for cosmetics production."
Explaining how Tata decided on naming the brand "Lakme", the art investor added, "A team representing the Tata Group is sent to Paris to put their heads together with their French counterparts to address this challenge."
That's when the team was introduced to a piece of work by Leo Delibes -- a famous French composer. "An opera he's composed is playing to houseful shows in Paris, and is centered around a female protagonist -- an Indian girl, the daughter of a brahman priest, who falls in love with a British officer," Mohan said. "The heroine's name is the Fench translation of the Indian Goddess of wealth and prosperity who stands for power, fortune, and beauty. When the Tata team hears about this, they know they have found the brand's name."
"Like the goddess, this brand will stand for the face of the strong elegant Indian woman; a prosperous symbol of beauty with divine powers. And so it goes: from 'Lakshmi' to its French translation 'Lakmé'," Mohan explained.
Lakmé started operations in a small, hired premises at Peddar Road in Mumbai and entered the market with an extensive range of personal care products for women. Over the years, Lakmé grew from strength to strength to become a name to be reckoned with among the top players in the Indian cosmetics market.
But, in 1993, TOMCO merged with Hindustan Unilever (erstwhile Hindustan Lever) in a strategic deal and in 1998, Lakmé divested its 50 percent stake in the joint venture and sold its brands to Hindustan Unilever. Currently, the company continues to lead the cosmetics market in the country, setting new benchmarks and cornering a major market share.
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