BackL'Oreal India reports profit of ₹252 crore in FY21, revenue slips 18%
L'Oreal India's total expenses for the fiscal were reported as ₹2,530 crore versus ₹3,014.4 crore in the previous year
PremiumNEW DELHI: French personal care company, L'Oreal's India arm that markets and manufactures cosmetics has reported an 18% decline in its revenue to ₹2,872 crore for FY2020-21 when the covid-19 pandemic struck.
The data has been accessed from business intelligence platform Tofler.
The company though reported a net profit of ₹252 crore despite the difficult business environment It was a 28% decline from FY20. L'Oreal India's total expenses for the fiscal were reported as ₹2,530 crore versus ₹3,014.4 crore in the previous year, as per the Registrar of Companies (RoC) filings with the Ministry of Corporate Affairs.
The company has been in India for nearly three decades. It first set up offices here in 1994. Today, 90% of its product portfolio is sourced and manufactured locally, at its factories in Pune and Baddi, the company said. It competes with businesses like Procter & Gamble and Unilever in some product categories. Globally, the organisation has subsidiaries like Lancôme, Maybelline, NYX Cosmetics, Garnier, Matrix Essentials and others.
The Indian cosmetics industry is witnessing firm growth over the past years. According to Goldstein Market Intelligence, India's cosmetics market was valued at nearly $11.16 billion in 2017 and is anticipated to grow at a CAGR of 5.91% till 2030. It estimates the annual retail sale of cosmetics and other personal care products to grow in the range of 15-20% annually and that domestic demand in India is one of the fastest growing across the world. Since 2015, it added that the total demand has grown by 60%.
Goldstein took into account fragrances, skincare, makeup and hair care, among others. High adoption of herbal products has led to growth of the segment at 15% annually, it added.
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