Reports state that talks have been ongoing for around a year now and the negotiations have entered the final phase
As the company looks to speed up growth in the country amid intensifying competition, L’Oreal India is looking to acquire a majority stake in Innovist, the company behind direct-to-consumer brands Bare Anatomy and Vinci Botanicals.
The reports noted that talks have been ongoing for around a year now and the negotiations have entered the final phase. While the details around valuation of the potential deal is not publicly available, media reports have pegged it at around Rs 4,000 crore.
Sales growth of L’Oreal India slowed to around 5 per cent in the previous financial year (FY25). The reports noted that Innovist focuses on science-backed personal care products and has a strong reach across the online marketplaces as well quick commerce platforms. The startup registered a 182 per cent jump in revenue to Rd 301 crore in FY25, the report mentioned.
The brands are focusing on capturing the market share as India’s Gen Z now uses their income to gather markers of their distinct identity. The Gen Z focus on aesthetics is clear from their activity in the beauty and personal care (BPC) space. By 2030, Gen Z will command a nearly USD 19 billion share in India’s BPC market.
A report by Redseer noted that one in two Gen Z women spends over 20 per cent of their disposable income on BPC. The average number of products used by this cohort has doubled, with distinct routines being followed for skin, hair and body.
The report added that beauty has also become genderless, with more Gen Z men adopting makeup and personal care routines.
Earlier, strengthening its decade-long partnership with L’Oreal in the country, Nykaa will now be taking over the end-to-end India operations of Kiehl’s. The company has signed an exclusive distribution agreement with L’Oreal Luxe.
“We are happy to say that we are taking over the Kiehl’s operations in India and we will provide end-to-end full stack services for Kiehl’s in India,” Anchit Nayar, Executive Director and Chief Executive Officer, Beauty, FSN Ecommerce, stated during the company’s earnings call.
This includes operating their direct-to-consumer website, freestanding stores as well as retailing the brand on Nykaa’s website and Nykaa stores, Nayar added. The company has further strengthened its relationship with L’Oreal in the third quarter with three brands that they are bringing into India in partnership with Nykaa.
