Modi Revlon Lanka plant to go on stream soon

Modi Revlon, the 74:26 joint venture between Umesh K Modi Group and Revlon of the US, is setting up a manufacturing unit for cosmetic products in Sri Lanka. The plant, coming up with an initial investment of $1 million (around Rs 4.2 crore), would commence operations soon.

Speaking to Business Standard, Deepak Bhandari, director (marketing), Revlon, said Revlon Lanka, the new company in Sri Lanka, will be a 100 per cent subsidiary of Modi Revlon. The unit will cater to Southeast Asian countries.

The new subsidiary will contribute 10-15 per cent to the total income by 2009 end. In the next five years, the total business of Modi Revlon is expected to touch Rs 400 crore, he added.

Meanwhile, the cosmetics and toiletries manufacturer has widened its product basket by launching Revlon Professional. This includes hair colour creams, conditioners and nail enamels, which will be sold directly to salons in all the metros. It will be manufactured at the company’s plant in Guwahati.

Bhandari said Revlon Professional would be the growth driver for the company.

“The professional beauty products market in India is estimated to be around Rs 350 crore and is witnessing a 20 per cent growth annually. Of this, the skincare market is around Rs 200 crore, haircare around Rs 130 and colour cosmetics around Rs 20 crore. The company’s focus would be on hair care and cosmetics. We hope to capture 10 per cent of the market share in the first year of launch,” he said.

The company is also setting up training centres in Bangalore, Mumbai and Kolkata to impart technical training to salons.

Besides, it is planning to enter the mass market category by the end of the year. “Our R&D in Modinagar, Uttar Pradesh, is working to create specific products for this category targeting the middle and lower middle class.”

The colour cosmetic segment market in India is estimated at around Rs 600 crore, of which the mass segment’s share is one-third.

The company is also planning to double its ‘store in store’ outlets from the current 1,800 in the next three years. These outlets in major retail chains and malls account for 90 per cent of the turnover, said Bhandari.