Germany-based Henkel AG is planning to add more bounce to its hair colour business through Indola, its new brand. The brand is seeing a phased rollout in Ahmedabad, Baroda and Surat, and more recently, in Mumbai. The company has shifted its Professional Cosmetics division to Henkel Adhesives Technologies, India. The company hopes to grow business through Indola, besides its existing high-end brand of Schwarzkopf.
“We needed to have a portfolio in hair colours and the new brand Indola is 30-35 percent cheaper than Schwarzkopf, which is pegged upwards of Rs 550. Besides, the premium end of the hair colour market has been stagnating and now, with Indola, we are targeting people in the middle-income bracket,” said Murali Sundar, Country Head, Henkel Cosmetics – Professional.
“To get to a break-even position, we have to get top-line growth. We are close to it and expect to reach that position by the end of the calendar year,” he added.
The company is planning to tie-up with beauty parlours to sell its new brand. Henkel reaches out with its Schwarzkopf brand to nearly 5,000 salons and has an exclusive tie-up with HUL-owned Lakme parlours. With the new brand, it expects to add another 6,000 parlours.
Currently, the hair colour business generates a turnover of Rs 50 crore with the premium Schwarzkopf brand, which has been around for nearly a decade in the country. With Indola, Henkel hopes to add to the numbers faster.
Source: www.thehindubusinessline.com
