L'Oreal to acquire majority stake in India's Innovist
L'Oreal Expands Presence in Indian Market with Innovist Acquisition
PARIS, June 18 (Reuters) - French cosmetics group L'Oreal will acquire a majority stake in India's Innovist, it said on Thursday, as it looks to step up its share of one of the world's fastest growing markets.
Details of the Acquisition
The deal, which includes rights to buy out the minority shareholders in full, adds local brands including haircare range Bare Anatomy and Chemist at Play skincare to its portfolio.
Financial details were not disclosed.
Strategic Importance for L'Oreal
"Our investment in this innovative Indian startup is a clear testament to our unwavering commitment to expanding L'Oreal’s footprint in India," said CEO Nicolas Hieronimus in a statement.
Market Performance and Growth Opportunities
Hieronimus said earlier this year that the company was “not meeting expectations” in India, which is seeing rapid growth driven by young, affluent, social media-savvy shoppers with rising disposable income.
The company, which makes about 1% of its turnover in India, had high single-digit growth in the country last year, but "did not gain a lot of market share, if any", Hieronimus told investors after reporting annual results.
It recently brought in a new CEO to boost its performance.
About Innovist and Future Plans
L'Oreal said Innovist is one of the fastest-growing "science-led and digital-first" personal care companies in India, based on clean formulations and transparent ingredients.
The deal is set to close in the next few months, post regulatory approvals, the company said. It also said that the founders and minority shareholders will continue to operate the business in collaboration with L’Oreal India.
Reporting and Editorial Credits
(Reporting by Margaux Perrin in Gdansk; editing by Barbara Lewis and Tomasz Janowski)
