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Indigenous skincare brands in the herbal and ayurvedic segment are getting ready to enter global markets with the backing of international partners. While Delhi-based Forest Essentials is taking the help of US-based cosmetics major Estee Lauder, Mumbai-based Nyassa hopes to rope in a global private equity partner to go overseas.
Samrath Bedi, Executuve Director, Forest Essentials, says, “Partners like Estee Lauder will prepare and help in taking our brand to markets in Europe, China and the US. We will be ready to go global in the next two years.”
Increasing stake
In 2008, Estee Lauder picked up a 20 per cent in the Indian skincare company and is likely to increase its stake even further. “Estee Lauder will provide the infrastructure, knowledge, training and understanding of regulatory issues when we enter the global markets,” added Bedi. Currently, Forest Essentials has 30 exclusive retail stores and also caters to the institutional segment in India.
“We believe we are going to be the first global ayurvedic brand to open our stores in West Asia and the UK and can bank on Estee Lauder to lead us in these markets,” said Bedi.
Another home-grown skincare brand Nyassa is also nursing global ambitions but only after it has found the right private equity partner. “We expect global private equity investors to add value and help us with the laws in international markets. We are already in talks with a few and expect to enter the global market by 2015 by opening our stores in places like West Asia,” said Ishween Anand, Founder of Nyassa range of hand-made natural products.
Smaller brands
Even smaller ayurvedic brands are planning to emulate the success of Indian brands such as Dabur and Himalaya in the international markets. Delhi-based Nature’s Essence intends setting up manufacturing bases in places such as Dubai and Mauritius.
Saurabh Nanda, Executive Director, Nature’s Essence, said, “We are willing to offload 10 per cent stake in our company to a private equity player so that we can set up factories outside the country where there are Indian Diaspora. Companies such as Dabur and VLCC have been successful and we want to be the front runner for herbal cosmetics in the global markets.” After 15 years in the Indian market, Nature’s Essence reported sales revenues of Rs 150 crore and has also valued its company to attract global investors.
“We have been exporting our brand all these years and today our company has got valuation of Rs 1,000 crore. Private equity investors will soon be roped in to help us make our global foray,” added Nanda.
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