Biotique ready to invest 450 cr for biz expansion

 The Dollar Business Bureau

Bio Veda Action Research Pvt Ltd, which sells herbal and Ayurvedic cosmetic products under the brand name Biotique, is planning to invest Rs.200 crore to double its capacity by setting up new plants in Himachal Pradesh and in the North-east, revealed an official of the company.

To further expand its presence in retail space, the company will increase the number of standalone stores in the country from 10 to 100, this financial year 2016-2017, said Vinita Jain, Chairperson and Managing Director at Bio Veda Action Research. In order to achieve that the company will invest Rs 250 cr in its standalone stores and also strengthen its sales and marketing divisions in India. The proposed target of achieving 100 standalone stores in India will be achieved by next fiscal and the size of each store will be around 500 sq ft.

Biotique has two facilities in Himachal Pradesh and a research and development center in Switzerland. Recently, it forayed into the children’s segment and is looking forward to venturing into other categories such as the essential oils segment as well.

Growing at a Compound Annual Growth Rate (CAGR) of 16% the beauty and personal care market in the country is estimated to be Rs.75,000 crore. Biotique has been on an upward trajectory with a growth rate of 35% on a year-on-year basis, revealed Vinita Jain. Confirming the market belief that Biotique  is a leader in the Ayurvedic and botanical beauty segment, she said that the company’s customers trust the internally funded zero-debt company. The company also has a good presence on the e-commerce platform, where 10% of its total sales take place.

Presently, Biotique exports its products to six countries, that account up to 60% of its total sales. The company is also looking to grow its global presence by venturing into new markets and is not looking for external funds in its expansion plans. A forecast report from KMPG wellness sector stated that the beauty and wellness market of India would touch Rs. 80,000 crore in the next two years.