Beiersdorf contributes to the 'Made in India' initiative with Nivea site
The move has been praised by the country's Prime Minister Narendra Modi who is eager to encourage international players to establish themselves in India and provide better service and a higher quality of products to its people.
With a reported annual production capacity of around 100 million units, the brand is expected to further expand the facility in the next five years and will look to local insights to create products that are suitable for India's skin care needs.
"This manufacturing site is our very first in India, where we have our own regional development lab that is set up at the same location to focus on innovations especially for Indian consumer needs and neighbouring markets. The idea is to get closer to the consumers and to respond faster to market needs," reiterates Stefan De Loecker, Beiersdorf executive board member.
Cosmetics industry growth in India to be twice as fast as US & EU markets..
The retail beauty and cosmetics market in India, currently estimated at $950 million, is predicted to grow to $2.68 billion by the year 2020.
The stats come from Indian based cosmetics event, 'International Beauty Mart', which IBM partner; Ms. Massooma attributes the latest global beauty trends and the stats to be prompting more international players to set up shops and increase their presence in India.
Whilst overall annual growth for the Indian cosmetics sector is reported to be twice as fast as that of the US and European markets, the hair and beauty sector was expected to see growth of $6.2 million in 2015.
Over the last five years cosmetics products have seen a growth of 60 per cent; saloons have seen a growth rate of 35 per cent and cosmetic treatments are sending a growth rate of 5 per cent.
Skin care cosmetics have experienced a relatively slower growth and products such as anti-wrinkle creams, cleansers and toners are not as popular as facial creams, moisturizers and fairness creams in this genre. Companies like Pond's and Fair & Lovely top the list in this segment.