Marico: Launching Kaya Skin Clinic

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Excerpts

The beauty industry in India, though small in absolute terms, was growing rapidly. Valued at Rs 1,500 - 1,800 crores, the industry was growing at almost 25 %. While the beauty industry on the whole was doing well, beauty services in the country were still at a nascent stage...

For years, Harsh Mariwala, the Chairman and Managing director of Marico Industries, wanted to have a presence in the skincare business where several other FMCG companies were already present. But he was looking for the right product to enter the high-margin skincare segment.

In late 2002, a New York-based company asked Mariwala if he would be interested in selling laser hair removal machines. Initially, Mariwala was not very interested because he felt the product could be commoditised easily. But what surfaced was the idea of a service offered around such machines. That was how the skincare business was identified...

In 2005, Kaya's base clientele had gone beyond 40,000 with 97% of Kaya's clientele rating its services between good and excellent. But Kaya faced huge challenges ahead. The biggest of them was scaling up. Unlike HLL, which adopted the franchising route for its Ayush and Lakmé salons, Kaya ran its own clinics...

Exhibit 1: Market shares of Marico's Brands
Exhibit 2: Print Campaign for Kaya
Exhibit 3: Growth of Kaya Skin Clinics
Exhibit 4: Kaya Treatments

1] "Good look, great margins,"www.economictimes.indiatimes.com, 3rd November 2004.

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