L'Oréal CEO Revises India Strategy, Invests in Beauty Tech
L'Oréal's CEO has expressed disappointment with the company's growth in India and is implementing a revised strategic plan. The company also unveiled a new Beauty Tech investment for 2026. This internal focus on digital innovation and localized product development could signal future brand divestments or acquisitions.
- While L'Oréal India saw high single-digit growth in 2025, it failed to gain any market share, prompting the strategy revision. The Indian market currently constitutes only about 1% of the company's global turnover. - The new Beauty Tech hub will be located in Hyderabad with an initial investment of over $383 million (€326 million). This center is intended to be a global base for AI-driven beauty innovation and is projected to create 2,000 tech jobs by 2030. - As part of the strategic reset, the company has appointed a new leadership team, including Jacques Lebel as the new India country manager. - A key area for growth identified in the revised plan is the L'Oréal Dermatological Beauty (LDB) division, which recently launched the CeraVe and La Roche-Posay brands into the Indian market. - The company already manufactures 95% of the products it sells in India at its facilities in Chakan and Baddi and plans to expand this capacity with the goal of more than doubling its business in the country over the next few years. - CEO Nicolas Hieronimus took the company's board of directors to India in October 2025 to personally identify growth opportunities and overhaul the strategic plan. - Globally, L'Oréal's recent acquisition activity includes the purchase of luxury fragrance brand Creed in October 2025 for $4.66B and the South Korean skincare brand Dr. G in December 2024, signaling a focus on high-growth and specialized categories. - For the fiscal year ending March 31, 2025, L'Oréal India's revenue grew 6% to ₹5,979 crore, while profit after tax jumped 23% to ₹597 crore, driven by a 3% reduction in advertising and promotional spending.
