Japan’s leading cosmetic giant Kose has signed a joint venture agreement with Indian drug maker Elder Pharmaceuticals to penetrate Indian markets through a joint venture company - Kose Elder (India).
As per the agreement, Kose will focus on the Indian market through the JV for manufacturing and selling cosmetics in India in which the Japanese company will hold 60% and Elder to hold the remaining 40%. Kose hopes to win hearts of Indian consumers through its quality skin care products.
The products offered by Kose include skin care and beauty products, skin toning products, anti aging creams, make up & color products, winter care products, skin whitening creams, fragrances, beauty serums, hair care & beauty products, skin re-vital creams and moisturizers.
These products are sold at specialty departmental and cosmetic stores to customers after a proper analysis of skin and advice. The company with its subsidiaries operates in Japan, China, Hong Kong, Taiwan, Singapore, Myanmar, Thailand, Malaysia, Vietnam, Indonesia, the Philippines, South Korea, United Arab Emirates and the US.
“Kose products will be produced in the existing plant of Elder Pharmaceuticals in Paonta Sahib in Himachal Pradesh, which is making pharmaceutical products. The same plant will be used for making cosmetic products because we will be following the same manufacturing norms as we do for pharmaceutical products. Furthermore, the company is looking at both the mass segment and the prestige segments. All the products are intended to be made in India,” said Alok Saxena, Joint Managing Director, Elder.
Kose plans to undertake strategic and business planning tailored to the region including combining strengths of technological prowess and creation of high-value-added cosmetics. Elder, meanwhile, through knowledge of local markets and strong sales networks within India would drive sales.
The aim is to develop new products assimilating Japan’s refined, advanced technology with the universal aesthetic demanded by the Indian woman, and to expand in the Indian market. Once the joint venture is established, Kose will consider the details of how to share tasks between the two companies and specifics such as sales channels, products, and brands.
