The Estée Lauder Companies (ELC) is evaluating local manufacturing opportunities in India, including third-party production of products sold in the country, as the beauty major looks to expand its presence in one of its fastest-growing markets.
The US-based group, which owns MAC, Bobbi Brown and Clinique, is assessing whether the three manufacturing units in Uttarakhand acquired through the luxury Ayurvedic skincare brand Forest Essentials could support other parts of its portfolio, Akhil Shrivastava, executive vice president and chief financial officer of ELC, told FE in an exclusive interview.
ELC completed its acquisition of the remaining 51% stake in Forest Essentials in March, taking full ownership. The company has operated in India for over 20 years and has a portfolio of 14 brands in the country.
“With Forest Essentials, we are proud to say that we are a local manufacturer now in India. This could also open the door for that serving as a base for the rest of our operations here,” Shrivastava said.
The company is also evaluating third-party manufacturing for products sold in India. Brands such as The Ordinary and MAC could be considered, although no final decision has been taken.
The move comes as ELC seeks to increase the contribution of emerging markets, which currently account for around 10% of its global revenue, to about 15% over the next few years.
India offers significant headroom for growth, with prestige beauty accounting for only around 10% of the country’s overall beauty market. The segment is growing at a high-teens rate and could nearly double every three to four years if that momentum continues, Shrivastava said.
ELC plans to widen access through varied price points and product formats while remaining focused on premium beauty. The Ordinary, a science-driven skincare brand, offers products at around Rs 500-600, while smaller formats of established products lower the initial purchase cost.
“We are a prestige beauty, pure-play company, and we believe the opportunity in prestige beauty is so big, especially in India, that we want to stay true and focused to that,” he said.
Quick commerce, digital expansion
ELC is expanding its presence across online marketplaces, specialist beauty retailers and quick-commerce platforms. It is present on Zepto and Blinkit and plans to introduce more brands through quick commerce. Clinique has also recently joined The Ordinary on Amazon.
“We want to go where the consumer is,” Shrivastava said, describing consumer coverage as a key pillar of the company’s global Beauty Reimagined strategy.
The group works with Nykaa, Tira, Shoppers Stop and Sephora, combining online channels with physical retail. Its digital network reaches around 19,000 pin codes, while its retail footprint comprises approximately 400 stores. Forest Essentials adds another 200 stores.
Shrivastava declined to disclose online sales as a share of India revenue, but said digital channels play a significant role in markets such as India, supporting product discovery, purchases, and replenishment.
Acquisitions an option
ELC will continue evaluating Indian beauty brands for potential acquisitions, focusing on individual businesses rather than minority investments. Any deal must align with its long-term strategy and deliver disciplined returns, Shrivastava said.
The company also supports domestic entrepreneurs through Beauty & You India, an initiative with Nykaa and Startup India. The programme has received more than 2,500 applications over five years, with women accounting for around 80% of founders represented. More than half of applicants have come from tier-II and tier-III cities.
