Thursday, March 7, 2013
Kose To Establish Cosmetics Venture In India
TOKYO (Nikkei)--Kose Corp. (4922) said Wednesday that it will set up a joint venture with a midsize Indian drugmaker this September in Mumbai to begin local production and sales of cosmetics.
The joint venture between Kose and Elder Pharmaceuticals Ltd will develop products for middle- and upper-class consumers in India. The two companies will determine details later, but Kose will take a 60% stake and dispatch the president. The venture, provisionally named Kose Elder (India) Private Ltd., will manufacture skin-care and makeup products at Elder's production facilities and sell them at pharmacies and cosmetic shops.
Japanese companies like Rohto Pharmaceutical Co. (4527) and Mandom Corp. (4917) have subsidiaries in India, and Shiseido Co. (4911) has been selling there through distributors since 2001, but they have limited their offerings to such items as men's hair products and perfumes. With the domestic cosmetics market on the decline, Kose is looking to move ahead of its competitors and develop the Indian market, which is expected to grow.
Kose currently has a presence in 18 countries and regions. It wants to use its entry into the Indian market as momentum to raise its overseas sales ratio from around 13% in fiscal 2011 to 30% early on.
(The Nikkei, March 7 morning edition)