L’Oreal, the French cosmetics major, on Friday, announced the acquisition of Mumbai-based Cheryl’s Cosmeceuticals, a professional skincare products and treatment company.
L’Oreal India did not reveal the size of the acquisition. Cheryl’s Cosmeceuticals has a turnover of Rs. 20 crore, and reaches 10,000 salons across India.
Talking to The Hindu, Jean-Christophe Letellier, Managing Director, L’Oreal India, said that “although small, the acquisition will help broaden our product offering in our professional products division and include skincare products and services.”
L’Oreal’s professional products division has three brands—L’Oreal Professional, Matrix and Kerastase. Its other divisions include consumer products and luxury and active cosmetics. Its portfolio in India covers 15 brands. “At the parent level, we have decided to accelerate efforts to be more democratized and so we are looking at different formats as part of our product strategy whether premium or mass market like sachets and smaller bottles,” he said.
L’Oreal intends to retain the Cheryl’s brand name, “although it will be integrated with our portfolio. The entire process will take 3-4 weeks.”
L’Oreal has been in India since 1994, and clocked sales of Rs. 1,580 crore in 2012. At the inauguration of its Research & Innovation (R&I) Centre in Mumbai in early 2013, Jean-Paul Agon, Chairman & CEO, L’Oreal SA, had said the company was targeting a turnover of Rs. 7,000 crore by 2016.
“India is very key for us as a group, and we are always on the look out for acquisitions. Based on all our divisions, we are growing at 20-30 per cent annually ,’’ Mr. Letellier said.
L’Oreal India has a manufacturing facility in Chakan near Pune, and the products made there cater to the Indian market.