PARIS — Puig has invested in beauty companies in India and Colombia, as the Spanish fashion and fragrance company continues its expansion drive by pushing into new markets.
Puig’s purchase of minority stakes in Kama Ayurveda and Loto del Sur, both brands that draw on traditional practices with a focus on natural ingredients, comes as growth in sales of products with a natural bent outpaces conventional products.
With a 12.5 million euro investment in Kama Ayurveda, and the option to increase its minority stake in the future, Puig is gaining a foothold in India, including the country’s lucrative retail network. Kama Ayurveda, which draws on ancient Indian medical practices, has 52 stores and shop-in-shops in the country, as well as an online business, following a five-year growth thrust led by private equity firm India 2020 Fund II, which is affiliated with Lighthouse Advisors, one of the country’s biggest consumer-focused private equity firms. With its investment, Puig intends to help the Indian label expand further, both at home and abroad.
“The Ayurvedic beauty industry is on a fast-paced growth trajectory and this partnership with Puig will accelerate our growth both on the domestic front and globally… We look forward to [Puig’s] strategic support and guidance for our next leg of growth, as we, too, become a global brand,” said Vivek Sahni, Kama Ayurveda co-founder and chief executive officer. Most of the label’s products are vegan.
Puig did not provide financial details of its purchase of Loto del Sur, a Colombian beauty and fragrance label, but said the companies had struck an agreement for a long-term partnership that gives Puig the option to further increase its stake in the coming years. The label, which counts eight stores in Colombia, uses locally sourced plants.
“Puig is already a strong industry presence in Latin America, and with today’s agreement, we further bolster our position in the region,” said Marc Puig, chairman and ceo of the company, noting that Loto del Sur is a premium, retail-focused label.
Loto del Sur was founded in 1999 by Johana Sanint, who will continue to act as president.
Puig last year added Dries Van Noten to its stable of fashion labels that includes Paco Rabanne and Jean Paul Gaultier, but in recent years has mainly focused its purchases on the perfume business, buying brands including L’Artisan Parfumeur and Penhaligon’s.