Elder Health Care today said it has entered into an agreement with Japan's Pola Chemical Industries to sell the latter's skincare and cosmetic products in India.
As part of the in-licensing deal, the firm will initially distribute Pola's skin whitening cream and gel and plans to extend the partnership to anti-ageing products, beauty treatment and fragrances, Elder Health Care said in a statement.
"The deal is expected to help company consolidate presence in the Rs 3,500-crore skincare market in India, growing at 20 per cent annually," Elder Health Care Managing Director Anuj Saxena said.
The company plans to sell Pola's products through both retailers as well as dermatologists and cosmetologists.
"The Pola range will be positioned in the premium segment and we expect this portfolio alone will generate sales of around Rs 20-22 crore within three years," he added.
With this tie up, India has become the 16th country outside Japan, where Pola's premium line skincare products will be sold.
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Pola is among the top ten global cosmetic companies and the number-one direct selling cosmetic company in Japan, it claimed.
Elder Health Care, which gets 90 per cent of its revenues from in-licensed products, is further scouting for partners for various products.
"We are in talks with another six companies for such deals. One such agreement for baby skincare products will be inked soon," Saxena added.
Besides, the company is also looking at growing its own brands as a long-term strategy.
"It (Elder Health Care) wants to increase the revenue contribution of own brands to 50 per cent from 10 per cent over the next three years. With this, Elder Healthcare is eying a turnover of Rs 300 crore by FY 2013," Saxena said.
Elder Health Care is the FMCG arm of the Rs 800-crore Elder Group.
Shares of Elder Health Care were trading at Rs 92 on the Bombay Stock Exchange in late afternoon trade, up 2.22 from its previous close.