Oriflame India Ltd, a direct selling cosmetics company, has acquired a manufacturing facility in the country. "The plant, called Siver Oaks Laboratory, is located at Noida and has been acquired for approximately Rs 36 crore. The facility is equipped with state-of-the-art technology to manufacture high quality skincare products", Inderjit Sial, chairman, Oriflame India, said.
According to Peter Hauggaard, regional manager, India & Sri Lanka, the company now intends to make India a major manufacturing hub, especially for the Asian region. In addition, the closure of the company's plant in Dublin may also have triggered the acquisition here. Oriflame now plans to foray into new markets such as Bangladesh, Thailand and Vietnam and increase its exports (from India) to 15 million units in three years.
The company has also announced the acquisition of the equity stake by Oriflame International thereby making Oriflame India a 100 per cent subsidiary. Oriflame International previously held 85 per cent of the stake in Oriflame India and the balance 15 per cent was held by Rollscon, an export company dealing in trade finance and commodity exports. However, Sial declined to mention the exact amount for which the stake was sold.
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According to Hauggaard, this move was initiated after the encouraging results from the Indian subsidiary. Oriflame India saw a 100 per cent increase in revenues last year to Rs 100 crore.
Oriflame has also launched a new range of products including shampoos (including sachets), deodorants, moisturising creams for different skin types, etc. This brings Oriflame's product portfolio to more than 160 products.
With these initiatives, Oriflame India expects its sales volumes to increase by 25-30 per cent by next year. Already, India accounts for about 10-15 per cent of the company's total turnover worldwide.