Stories
L'Oréal CEO: No Immediate Plans for More India Acquisitions, Focus on Capacity Expansion
- •L'Oréal CEO Nicolas Hieronimus stated no immediate plans for further acquisitions in India after buying Innovist, owner of Bare Anatomy and Chemist at Play.
- •India is a crucial growth market for L'Oréal, with its business growing at 18% compared to the market's 10%, making it the group's seventh-largest growth contributor.
- •The company plans to expand manufacturing capacity in India by increasing output at existing facilities rather than building new plants, manufacturing 95% of local sales.
- •L'Oréal sees strong momentum across its portfolio in India, driven by mass-market products, professional beauty, dermatological beauty (CeraVe, La Roche-Posay), and luxury segments.
- •India is a hub for innovation, with technologies like Melazil and hair-care co-emulsion developed locally and deployed globally; a new Hyderabad tech center will support global operations.
Key Questions Answered
L'Oréal has no immediate plans for additional acquisitions in India in the near term following its purchase of Innovist, the owner of Bare Anatomy and Chemist at Play. CEO Nicolas Hieronimus noted that while future opportunities might arise if they complement the portfolio, none are expected in the short term.
L'Oréal plans to expand its manufacturing capacity in India primarily by increasing capacity at its existing operational sites rather than building new greenfield plants. The company manufactures approximately 95% of its locally sold products within India and exports about 20% of its local production to regional countries.
L'Oréal recently inaugurated a technology centre in Hyderabad that is set to employ over 2,000 people to support operations both in India and globally. The facility will initially focus on administrative activities before expanding its scope into areas like content creation and technology-driven functions.
