Coty’s acquisition of P&G’s beauty portfolio will see the beauty giant enter the fast-growing professional hair care market in India for the first time. According to a Livemint report, the Indian professional hair care market is valued at an estimated Rs 700 to 800 crore and is growing at a rate of 18 to 20 percent annually.
As part of the deal, Coty will acquire P&G’s India unit, which includes the Wella Professional, System Professional, Sebastian Professional and Nioxin brands. Coty faces stiff competition from Henkel, who is looking to double its presence in the market this year, bringing the number of salons carrying its Schwarzkopf brand to 16,000, as well as Unilever Hindustan, who is rumored to be eyeing up Keralan hair care brand Indulekha, and local players Godrej Consumer Products, Bajaj and Emami.
“With this merger, Coty will get a foothold in the salon business, which is a huge growth channel and has seen the entry of companies like Hindustan Unilever and Godrej Consumer Products in the last two years,” said Nitin Mathur, Research Analyst (emerging markets consumer), Société Générale Group.