Direct selling firm Oriflame announces acquisition of wellness plant

NEW DELHI: Direct selling firm Oriflame, which makes skin-care products and colour cosmetics, on Friday announced the acquisition of a wellness facility in Roorkee, Uttarakhand, for an undisclosed amount.

Oriflame, the India arm the Swedish cosmetics maker, is among the top two-three direct selling firms in the country, the others being Amway and Tupperware. It has been operating in India since 1995. This is the Oriflame’s first acquisition in the country.

Niklas Frisk, MD, Oriflame India said, “We are working to coordinate all aspects of the complex project to ensure we are able to launch wellness products in the country in the coming years.”

The new facility is in the process of renovation and upgrading to ensure that production standards are in compliance for production of wellness products, a company statement said.

“The facility is designated to fulfill increasing sales demands in India and in Asia. The long-term site development plans will help the facility to supply wellness products across the Asian region,” the statement added.

The direct selling industry has clocked growth of over 22% last fiscal to touch Rs 6,385 crore in 2011-12, compared to Rs 5,229.4 crore the previous year. Though the direct selling industry grew faster than traditional FMCG players, its growth has been slower than the previous years.