Puig Acquires Majority Stake in Kama Ayurveda to Strengthen its Presence in India and Global Wellness Offerings

Based in New Delhi and founded in 2002, Kama Ayurveda offers a range of traditional and holistic treatments for beauty and well-being, including night serums, hair care and brightening oils for the face. Located at the higher end of the market, all products used pure, natural and organic ingredients and were largely vegetarian and vegan.

Puig had held a minority stake in the Indian company since 2019.

The decision to acquire a majority stake stems largely from Puig’s desire to strengthen its presence in the Indian market, according to the company’s announcement. As part of the deal, Puig said he would continue to “strengthen the brand’s leadership in the Indian market” ​where Kama Ayurveda already operated 54 stores across the country, aiming to help bring that number to 60 by the end of 2022.

India ‘incredibly exciting’ for Puig

Marc Puig, Chairman and CEO of Puig, said: “India represents an incredibly exciting opportunity for Puig, and with this investment we will continue our strategy of consolidating Kama Ayurveda’s strong domestic presence and pursuing exciting opportunities in key overseas markets.”

The CEO said the move was particularly exciting given that Kama Ayurveda was now a “Leading brand in India” which had engaged millions of beauty consumers in search of plant-based sustainable skin care and lifestyle products.

Vivek Sahni, co-founder and CEO of Kama Ayurveda, said: “We are proud to write this new chapter in our successful partnership with Puig, which has helped accelerate the growth and expansion of Kama Ayurveda across India. Leveraging Puig’s wealth of experience supporting founders and growing global beauty and skincare brands, together we will bring the experience of authentic Ayurvedic beauty and wellness to new audiences.

A global boost for Kama Ayurveda

As part of the deal, Puig said he would support Kama Ayurveda’s global expansion, including bringing the beauty and wellness brand to the UK in early 2023.

“With a sophisticated online presence and strong national brand recognition, Kama Ayurveda is uniquely positioned to bring its products to the global stage,”said Puig.

Clotilde Drapé, global beauty and personal care analyst at Mintel, said the majority stake made sense given current trends in the beauty market.

“Not only does Kama Ayurveda’s brand positioning enjoy strong appeal to local Indian consumers, it is also a brand that could bode well in Western markets thanks to the growing wellness and beauty trend. holistic”,​ Drapé entrusted CosmeticsDesign-Europe.

According to Mintel GNPD [Global New Product Development] data, products with Ayurvedic positioning in the European beauty and personal care market grew by 36.8% between 2018 and 2021.

In India, Drapé said the deal would see Puig take a “competitive attitude”​ domestically and aligning with interest and movement here as well – Estée Lauder, for example, recently launched an incubator for Indian beauty entrepreneurs in partnership with beauty and wellness e-commerce platform -be Nykaa.

Puig beyond perfumes

The acquisition of the majority stake also pushed Puig “outside of its traditional fragrance portfolio and into the wellness world”according to the analyst.

And it was something the Spanish firm had been working on for quite some time. In January 2021, Puig has created a dedicated dermal division comprising its Uriage and Apivita brands and Puig’s 50% stake in Spanish skincare company Isdin. This new derma division has made Puig the third European player in the sector of dermo-cosmetic products for sale in pharmacies and is part of the company’s broader growth plans which aimed to generate 3 billion euros. euros in sales by 2023 and more than 4 billion euros. by 2025.

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