Beauty outfit plans retail chain

Brushman India, the Rs 80 crore beautycare company, is eyeing a turnover of Rs 300 crore by 2010, on the back of new product launches, foray into branded retailing and high growth product categories.

Brushman is investing Rs 140 crore this year in expansion of its various businesses.

Speaking to Business Standard, Rohit Sood, director - sales and marketing, Brushman India, said, "The plan is to grow the brand in India and position it in the niche segment."

According to plans, Brushman plans to foray into branded retailing this year with 100 retail stores in India.

Christened 'Headstart', the stores would span over 200 sq ft and stock Brushman's entire product portfolio.

Brushman currently offers products in haircare, beautycare, paint brushes, and salon accessories in India that are priced between Rs 40 and Rs 34,000.

Its most expensive product is a niche skincare product priced at Rs 34,000 for 15ml.

The company also plans to enter high-growth product categories this year like toiletries, makeups, perfumes, among others.

Brushman will invest close to Rs 50 crore in setting up a second plant in Uttaranchal to increase production of paint and household brushes.

It invested Rs 35 crore in setting up its first plant in Uttaranchal which currently produces four million pieces per annum.

"With commencement of a second plant this year for paint and household brushes, the production capacity should go up to 10 million pieces," Sood informed.

Brushman's paint brush business is its core strength and contributed close to Rs 60 crore to the Group's Rs 80 crore turnover last fiscal.

Brushman also plans to expand its branded salons - Keune - to take the total to 21 salons from nine right now. Keune products and treatments are only available to consumers from professional hairdressers.

According to market research agency AC Nielsen, India's largest consumer products company Hindustan Unilever Ltd (HUL) is the market leader in the skincare category with a market share of 55 per cent.

The category, however, is getting more competitive with most consumer product companies launching new skincare products.

Last year, HUL's arch rival Procter and Gamble launched Olay, a premium skincare product from its international portfolio, following which HUL and other multinationals such as L'Oreal India and Nivea India launched some high-end products.

According to a report by Credit Suisse, an international brokerage, in India, only 22 per cent of the population uses skincare products of any kind.

The segment, however, has been growing by 16-18 per cent annually. The penetration in urban markets at 31.5 per cent, is higher than that in rural markets, where it is only around 18 per cent.