Lotus Herbals, India’s home-grown beauty brand is now considering to offload a minority stake in the company. It is in talks with investment bankers to identify potential targets to rope in private equity investors for acquisitions. The annual turnover of Lotus Herbals in FY19 was Rs.600 crore wherein the exports contributed 15% of the total turnover. It has been looking closely at a few mid-sized domestic brands in the naturals space to find a potential acquisition. Nitin Passi, joint MD of Lotus Herbals said “We are open to mid-sized acquisitions now and are approaching investment bankers. We’ve just started the process and have an inorganic strategic plan for mid-sized acquisitions, which could be in India or overseas, as long as it contributes tangible value to our business,”
According to Euromonitor’s research, India will topple nations like Germany, the UK, and France to become the world’s 5th largest beauty market by 2022. The report by Euro-monitor also estimates India’s overall beauty and personal care market at Rs.97,100 crore. With skincare at Rs.12,500 crore and colour cosmetics at Rs.8,000 crore, the report estimated colour cosmetics to grow by 17.4% through 2022, in which skincare will top growth of about 10.4%.