Mumbai: French beauty giant L'Oreal is acquiring a majority stake in homegrown personal care firm Innovist, which owns digital-first brands such as Bare Anatomy and Chemist at Play, the company announced on Thursday. This marks L'Oreal's first acquisition in India in nearly 13 years, following its purchase of Mumbai-based Cheryl's Cosmeceuticals in September 2013, as it seeks to accelerate growth in the country. The financial specifics of the transaction were not disclosed, but the company stated it has secured the rights to fully buy out Innovist's minority shareholders.
Strategic Move to Capture Young Consumers
The acquisition comes as L'Oreal aims to gain market share in the local beauty sector and build a portfolio that resonates with young shoppers, who are increasingly moving beyond established brands and experimenting with digital-first labels that cater to untapped consumer needs. India's beauty and personal care (BPC) market has witnessed an influx of new-age brands, intensifying competition and prompting legacy players like L'Oreal and Lakme to innovate for Gen Z and millennial consumers.
“Our investment in this innovative Indian startup is a clear testament to our unwavering commitment to expanding L'Oreal's footprint in India,” said Nicolas Hieronimus, CEO of L'Oreal.
Revising India Strategy
Earlier this year, Hieronimus noted in an earnings call that India had not met L'Oreal's expectations, and the company had struggled to gain significant market share despite high single-digit growth, leading to a revised strategic plan for the market. Last year, L'Oreal appointed Jacques Lebel as the new country manager for India, replacing Aseem Kaushik, who moved to the role of chairman.
Post-Acquisition Plans
After the deal closes, Innovist's brands will be integrated into L'Oreal's consumer products division portfolio. The seven-year-old startup's founding team, led by Rohit Chawla, Sifat Khurana, and Vimal Bhola, will remain as minority shareholders. L'Oreal has previously made minority investments in local new-age brands such as Arata, Deconstruct, and Chosen through its venture capital arm, Bold.
