The French cosmetics group L’Oréal announced this Thursday (18) that it will acquire a majority stake in the Indian company Innovist, with the aim of expanding its participation in one of the fastest growing markets in the world.
The deal, which includes the right to fully redeem minority shareholders’ stakes, adds local brands to the portfolio, including hair care line Bare Anatomy and skin care line Chemist at Play.
Financial details were not disclosed.
L’Oréal’s acquisition of Innovist marks its first purchase of an Indian company in nearly 13 years, since it acquired Mumbai-based Cheryl’s Cosmeceuticals in September 2013.
“Our investment in this innovative Indian startup is clear evidence of our unwavering commitment to expanding L’Oréal’s presence in India,” Chief Executive Nicolas Hieronimus said in a statement.
Hieronimus had said earlier this year that the company was “not meeting expectations” in India, which has seen rapid growth driven by young, affluent, social media-savvy consumers with growing disposable income.
The company, which generates around 1% of revenue in India, recorded high single-digit growth in the country last year, but “didn’t capture much market share, if any,” Hieronimus highlighted to investors after releasing annual results.
The company recently hired a new chief executive to boost performance.
L’Oréal said Innovist is one of the fastest growing “science-driven and digitally-focused” personal care companies in India, based on clean formulations and transparent ingredients.
The transaction is expected to close in the coming months, subject to regulatory approvals, the company said. She added that the founders and minority shareholders will continue to operate the business in collaboration with L’Oréal India. The brand’s portfolio will become part of L’Oréal’s Consumer Products division.
