Indian FMCG Giant Buys Into Luxury Skincare
Indian consumer goods major Dabur acquired a minority stake in RAS Beauty, a luxury direct-to-consumer skincare brand. The move signals Dabur's push into premium personal care and is seen as part of a broader consolidation trend among D2C brands in the fast-moving consumer goods sector.
The ₹60 crore investment marks the first deal for Dabur Ventures, a new entity launched in October 2025. Dabur has allocated a ₹500 crore fund for this venture arm, which is tasked with acquiring stakes in new-age, high-potential D2C businesses in sectors like personal care, wellness, and Ayurveda. RAS Beauty, founded by the mother-daughter trio Sangeeta, Shubhika, and Suramya Jain, operates on a "farm-to-face" model in Raipur. The luxury skincare brand boasts strong financials, with a three-year compound annual growth rate (CAGR) of around 75% and an annual recurring revenue (ARR) of approximately ₹100 crore. The capital infusion from Dabur is earmarked for specific growth initiatives. RAS Beauty co-founder and CEO Shubhika Jain stated the funds will be used to accelerate the brand's omnichannel presence, deepen research and development, and invest in brand and team building. This acquisition aligns with Dabur's explicit strategy of premiumization to cater to evolving consumer aspirations, particularly among Gen Z and millennials. Dabur India's Executive Director Abhinav Dhall noted that the company believes the premium beauty segment will witness strong growth in the coming decade. The deal is indicative of a wider consolidation trend in India's D2C space, where established FMCG players are increasingly investing in or acquiring digital-first brands. Companies like Hindustan Unilever and ITC have made similar moves to tap into the innovation and niche appeal of D2C startups. The Indian luxury beauty market is on a significant upward trajectory, with one report projecting it to grow from a billion-dollar market in 2024 to $1.6 billion by 2028. This growth is fueled by rising disposable incomes and increased demand for premium, ingredient-focused skincare products.
