Content area
Full Text
Estee Lauder Buys Stake in India Firm
The Estee Lauder Cos. has gained its first firm foothold in the booming beauty market of India by acquiring a minority stake in Forest Essentials, a fledgling ayurvedic skin, body and hair care manufacturer based in Nida, a suburb of Delhi.
Forest Essentials, which manufactures its products in the heart of the Himalaya Mountains, was founded in 2000 by Mira Kulkarni, who is the chief executive officer. The product range has grown beyond 100 stockkeeping units, which are now retailed in seven Forest Essentials freestanding stores, along with hotels and spas. Two more freestanding stores are expected to open soon, with plans for six more by yearend and a total of 35 by the end of 2010.
The acquisition of a minority share in what could be construed as a small firm still in the startup stage might seem like a modest move, but it fits into a very large ambition pursued by Lauder, a longtime market leader now undergoing something of a sea change.
Lauder has increasingly worked to shift its focus abroad. In the last year, ceo William P. Lauder has frequently stressed international is becoming a larger portion of the firm's business and one that offers a more meaningful return on investment. Following the company's earnings call in May, Lauder told WWD, "We will over-allocate resources to these faster-growing markets."
Later that month, Lauder noted, "The fact of the matter is, we look at ourselves as one of the larger American consumer packaged goods companies," adding that in his view many of the best...