L'Oreal buys Mumbai-based Cheryl's Cosmeceuticals

MUMBAI: L’Oréal SA, the world’s largest cosmetics maker, has bought Mumbai-based Cheryl’s Cosmeceuticals for an undisclosed amount to enter the professional salon skincare market.

Cheryl’s Cosmeceuticals, founded by Oscar and Cheryl Pereira in 1986, is known for its skincare products and treatments across the country, selling products worth approximately Rs 20 crore a year through more than 10,000 beauty salons.

The acquisition — its first in the country — will help the French firm enter a new segment that will complement its booming salon hair-care business and also tap semi-urban and rural markets with lowerpriced products.

“Over 95% of the salon offer facial or skin care treatment where we have no offerings except the top-end market,” Jean-Christophe Letellier, managing director at L’Oréal India, said.

“Even within our global portfolio, the company doesn’t have any professional salon skincare range like Cheryl’s,” added Letellier who took the new post just last month.

The buy will also help L’Oréal compete with lower-priced hair and skincare products in small towns. Cheryl’s products cost anywhere between Rs 500 and Rs 2,000 while L’Oreal products generally costs at least 50% higher.