L’Oréal, the French cosmetics giant, has announced plans to invest $100 million in India.
The company said on Thursday that it is set to invest in the Indian cosmetics market over the next five years, and in addition to its existing investments in China and China-based manufacturing, it plans to establish an India-focused operations.
“In addition to our existing investments, L’ Oréal intends to invest a further $100-200 million in the cosmetics market, in the first instance through our wholly-owned Indian subsidiary L’Occitane, which is currently based in the city of Surat,” the company said in a statement.
“We will invest in more innovative brands in India, including more innovative products and services, while maintaining our focus on our core brands.”
“These investments will allow us to achieve our long-term goals, which include building a stronger, more profitable, and more global cosmetics business,” it said.
India has been a linchpin for L’ Oreal in recent years, as the company has invested billions of dollars in manufacturing in the country, particularly in the manufacture of beauty products.
The country accounts for more than 50 per cent of L’Os investments in India in the last decade, and the company employs more than 8,000 people there.
L’ Orgeal said it will invest $2 billion in the company’s India operations over the course of the next two years, in an effort to grow its business in the small and medium-sized markets in the southern states of Tamil Nadu, Kerala, Andhra Pradesh and Andaman and Nicobar Islands.
The $2-billion investment will be followed by a further investment of $500 million in 2017-18, the company added.
L oseal India will also invest $3.5 billion in an expansion of its beauty retail operations in India and will build new stores in the states of Kerala and Tamil Nadu.
The investment is part of L oseel’s strategic plan to strengthen its presence in India through investment and expansion of the business.
L Oreal said the investments will help the company expand its presence, particularly across the states.
“The investment will help us expand our business in these areas,” the cosmetics company said.
“It is also important to highlight our commitment to the people of India through our business, which we believe is vital for the future growth of the company.”
“L’Orgeal is committed to providing the best in cosmetics and to making them available for the widest possible range of consumers,” it added.