The Hindu Business Line : ColorBar to expand presence

Growth plans
The company plans to start operations in the east by December, where it will operate through retail presence in chain outlets such as Shopper's Stop, Pantaloons and Westside.
It plans to spend 20 per cent of its revenues on brand promotion.

New Delhi , Sept. 1

ColorBar Cosmetics Pvt Ltd, a part of the Rs 2,500-crore K.K. Modi Group, said it was expanding its presence in the western and eastern markets, with an investment of around Rs 8 crore. The investment also includes the introduction of eight new product lines.

"We have already started our foray into the western States and plan to have a retail presence in about 2000 outlets by 2008. Right now we hold 10 per cent of the northern colour cosmetics market of Rs 148 crore. We plan to double our growth and capture at least 10 per cent of the national organised colour cosmetics market of Rs 400 crore," said Mr Samir Modi, Managing Director, ColorBar Cosmetics Pvt Ltd.

The company plans to start operations in the east by December, where it will operate through retail presence in chain outlets such as Shopper's Stop, Pantaloons and Westside.

ColorBar also plans to launch eight new product lines with 126 colour variants. These products include Soft Touch (lipstick), Day Proof (long lasting lipstick), Extra Durable (kiss proof lipstick), Lip Glide (liquid lip colour), Duo Mascara and a bigger size of its already existent nail polishes (9 ml).

"We are an affordable premium brand with products priced between Rs 30-300. We are basically targeting the working women fraternities in tier 1 and 11 cities," Mr Modi said.

On marketing strategies, Mr Modi said the company plans to spend 20 per cent of its revenues on brand promotion. The company plans to have in-house beauty experts at each outlets who will give beauty solutions as well as recommend ColorBar products. It is also starting various print-based media campaigns. About television advertisements, Mr Modi said that it would happen only when the company goes totally national. Though the company has roots in India, its product formulations are manufactured in Greece, Milan, Germany, South America and Taiwan. It has also started packaging its products in China. "Though our products have very affordable prices, their quality is international," Mr Modi said.

ColorBar had clocked revenues of Rs 9 crore in 2005-06,and is targeting revenues of around Rs 20 crore in 2006-07.

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