India’s Lotus Herbals looking to acquire brands in the natural or organic beauty space

By Amanda Lim contact

- Last updated on GMT

Lotus Herbal is seeking to acquire natural or organic beauty brands as part of its ‘rapid’ growth strategy. ©Lotus Herbals
Lotus Herbal is seeking to acquire natural or organic beauty brands as part of its ‘rapid’ growth strategy. ©Lotus Herbals
Leading Indian cosmetics company Lotus Herbal is seeking to acquire natural or organic beauty brands as part of its ‘rapid’ growth strategy.

Nitin Passi, joint managing director of Lotus Herbals told CosmeticsDesign-Asia ​that inorganic growth through suitable acquisitions was one of the drivers of the company’s medium to long-term growth strategies.

This would enable the company to grow the business ‘rapidly’, he added.

“Our current business model continues to grow but to accelerate growth further we are open to pursuing the inorganic growth route. We now have the resources in terms of management bandwidth, manpower and capital to pursue acquisitions as part of our overall strategy.”

Naturals are the way forward

Passi said the company continued to see a lot of potential for natural or organic beauty brands in India.

“The Indian personal care market is growing rapidly, especially in skin care and makeup. With an increasing middle class, urbanisation and rising disposable income, consumption of beauty products is increasing and more so in the natural beauty space.”

Since its launch in 1993, Lotus Herbals has been an advocate for natural beauty products.

Last year, the company launched a premium organic beauty brand, Ikkai to target millennial beauty consumers in India.

The range of products consisted of organic face masks, scrubs and soufflés that were packaged in convenient sachets for no-fuss and on-the-go use.

With the company’s experience in the natural and organic beauty space, Passi highlighted that the company has strict criteria when it comes to selecting brands to invest in.

“The discerning Indian consumer has a preference for natural beauty solutions. These consumers are able to differentiate between brands offering good quality and those that offer average quality products.”

Passi did not name any brands the company had in mind, but revealed the company was open to exploring both domestic and international opportunities.

Lending a hand

One of the biggest challenges facing smaller brands in the market today, said Passi, is brand awareness.

However, with its years of experience in the personal care market, Lotus Herbals will be able to help them navigate obstacles.

“At Lotus, we try to address the problem through consumer education. We have more than 1,600 beauty advisors across retail formats who recommend the right solutions in terms of product regimen to consumers. Our brand messaging is conveyed through various media channels that include television, print, digital and experiential marketing to educate consumers.”

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