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Syona Cosmetics to raise ₹13 cr to fund expansion

Swathi Moorthy Chennai | Updated on January 15, 2018 Published on November 25, 2016

Syona Cosmetics’ brand Estrella Professional is sold close 500 salons in Tamil Nadu and 600 in Karnataka, Kerala, Andhra Pradesh and Telangana

Chennai-based Syona Cosmetics, which offers professional beauty products and training to beauty salons in India, will raise ₹13 crore for funding its expansion plans.

The amount will be used to expand its salon network to 2,500 from the current 1,100 by March 2018, open more training centres and venture into the retail segment. The company’s turnover was ₹75 lakh a month, and is expected to go up to ₹1 crore a month next year. In Chennai it has a market share of 35 per cent.

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Syona Cosmetics’ brand Estrella Professional is sold close 500 salons in Tamil Nadu and 600 in Karnataka, Kerala, Andhra Pradesh and Telangana. Raja Varatharaju, founder and Chief Executive Officer, said the company is looking at Delhi, Mumbai and Kolkata as destinations for expansion plans.

Syona Cosmetics’ portfolio includes products in skin care and hair care categories. The company is now entering into body-care category and the products will hit the market in January 2017. The company partners with eight European laboratories to develop their products.

The manufacturing facility in Chennai has the capacity to handle demand for 1000 salons. As the company plans to expand their network, Varatharaju said they are looking to moving to a bigger facility.

In line with the expansion plans, Estrella professional products will be available in online platforms like Amazon.in. There are 25 products available and costs around ₹500 per product. Most of Estrella Professional products are in single-use format and it is difficult for consumers to buy them.

Correction

The copy has been amended to correct the company's turnover figures.

Published on November 25, 2016
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