L’Oreal plans to break even in the next three years  ( June '4,2001, FE)

L’OREAL India, the Indian subsidiary of L’Oreal Paris, plans to achieve a break-even in the next three years. L’Oreal managing director Mr Eric Delamare told The Financial Express, that the group targets its sales turnover to grow by 100 per cent every year.

L’Oreal operates through two divisions in India — L’Oreal Professionel Paris, which offers customised hair care solutions via the parlour route, and L’Oreal Consumer Division, which markets a range of colour cosmetics under brands “L’Oreal” and “Maybelline”. L’Oreal Professionel Paris has already initiated in India the concept of retailing a range of exceptional hair care products, each with a unique system designed to meet the specific needs of individual hair types, exclusively through salons. According to L’Oreal Professionel Paris manager (products division) Mr Vismay Sharma: “Today, the Division partners with over 2,000 top salons across major cities with an area of operation spread over 25 cities, and has a proficient facility in the four regions in the country.

Now, the Division plans to expand the partnerships with over 5,000 top salons in the country in the next one to two years.” Reasons Mr Sharma: “In a bid to hone the artistic and creative skills of the Indian hairdressers to get their expertise levels at par with their international counterparts and acquaint them with the latest trends worldwide, the salon division targets to retail L’Oreal products through salons.” As regards building fundamental skill sets, adds Mr Sharma: “L’Oreal Professionel Paris offers internationally recognised foundation and advanced diploma courses in colour training and styling and product workshops.” Informs Mr Delamare: “L’Oreal invests 30 per cent of the overall sales turnover on training.”

L’Oreal Professionel Paris markets two variants in the hair colour segment, ‘Majirel’ and ‘maji.contrast’. The division has also launched a new range of haircare products, Serie Expert, with precision formulations. The new products include the Repair range which rejuvenates dry hair; the control range meant for dandruff, falling hair problems; the colour range to provide shine and strength to coloured hair and silver range to prevent yellowing of grey hair.” L’Oreal is present in 200 big towns in India, at present. With the growing disposable incomes, Mr Delamare feels that India is a key market, and has more growth potential than even China.