The Hindu Business Line : Nature's Essence banks on direct selling, personal reach

When everybody is jumping onto the retail bandwagon, Delhi-based Nature's Essence, makers of personal care products, hopes to take on the biggies through what it believes is its strength - direct selling and personal reach.

It looks to cash in on the "beauty wave" that is spreading across the country, thanks to the mushrooming of salons in every nook and corner.

The 10-year-old company sells its range of value-for-money aromatherapy and herbal products, and other cosmetics for skin, hair and body care through 600 distributors, across 10,000 salons and an equal number of retail outlets (both kirana and organised stores).

Around 60 per cent of Nature Essence's revenue (Rs 30 crore) comes from salons, the company's biggest catchment area.

Says Mr Saurabh Nanda, Executive Director: "We have always believed in direct interface with salons to educate and create awareness about our products and concepts. Our strength is technical education and personal reach. We hope to take the salon count to 30,000 by the end of the financial year, especially in the B and C cities, and rural areas, which offer huge potential.

"The margins in the salon are higher than that in retail. Of course, retail too is catching up. We have been in retail only for the last two years and we hope to take the retail store count to 20,000 by the year-end."

Nature's Essence range of products

Nature's Essence is available in Big Bazaar, Apollo and Guardian Life Care pharmacies and Reliance Retail outlets. It is in talks with Subhiksha, Vishal Mega Mart, and Marks and Spencer too.

Global presence

Nature's Essence is also present globally in markets such as South Africa, Mauritius, Reunion Island and the Caribbean, where its products are primarily sold through direct selling in trade fairs, seminars and workshops, apart from a significant retail presence in the GCC countries. It is also sold under a private label in the US and Australia. In India too, the products are sold through television for a private label.

The company plans to raise Rs 100 crore in two years through an IPO to fund its retail expansion plan, said Mr Nanda. Nature's Essence is looking to set up its own exclusive boutiques that will not only sell products but also educate and train beauticians. It is also looking to enter the organic foods market soon. Immediate plans include introducing a premium product in the colour cosmetics category.

Nature's Essence has a production unit in Haridwar and is setting up another unit in Uttaranchal. It is eyeing revenues of Rs 100 crore in two years.

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