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Bindu D. Menon

New Delhi, July 18 Estée Lauder Inc, a leading manufacturer and marketer of skin care, fragrance and hair care products, has picked up an undisclosed equity stake in premium ayurvedic brand Forest Essentials in a move that is seen to widen its portfolio for the global market.

The stake sale would mean that the global major will provide technological know-how and brand management services to Forest Essentials to grow in India. “Besides having access to our inventory, the partnership with Estee Lauder will mean that the global brand will set the standard operation practices in place for us to grow both for the domestic and international market,” Ms Mira Kulkarni, CEO, Forest Essentials, told Business Line.

Founded in 2000, Forest Essential has over 100 stock keeping in the skincare category including body polishers and hand-pounded organic fruit scrubs in its portfolio.

The company will retain its name and identity. Ms Mira Kulkarni will remain Managing Director and Mr Samrath Bedi, the Executive Director . Both are a part of the board as major shareholders.

The company is also looking to expand its manufacturing units. “Currently, we have 30 per cent capacity utilisation in our two existing facilities. We will be adding a new facility in Uttaranchal at an investment of Rs 6 crore to step up production,” she said, adding that the new facility will be built with technological input from the global partner.

Currently, institutional sales account for 65 per cent of its total turnover. “We are giving increased thrust on retail as it is a major revenue channel. From our present seven company-owned outlets, we will be adding 31 new stores at an investment of Rs 30 lakh a store,” she said.

Ms Kulkarni said the company will also focus on corporate gifting segment. “It will also be parallel channel for revenue”.

More Stories on : Mergers & Acquisitions | Healthcare Products

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