New Delhi: Indian cosmetics and fashion retailer Nykaa and Dubai-based lifestyle and fashion conglomerate Apparel Group have tied up to expand into the Gulf region, the companies said on Thursday.
With the agreement, Nykaa is expected to grow in a region that sees high demand for beauty products, months after inflationary pressures in India prompted India to report “slow weather” in the three months ended June.
Nykaa Chief Executive Falguni Nair said the two companies will build a multi-brand beauty retail business in Gulf Cooperation Council countries, with Nyka holding 55% and the rest of the apparel group.
The companies did not disclose financial details of the agreement.
“We believe that the per capita consumption of beauty in this area is very high,” Nair told reporters. “We see this as a multi-year growth opportunity.”
The TPG-backed retailer, which made a strong market debut in November 2021 with a valuation of around $14 billion, expects strong demand for its products in the current quarter.
Nykaa said in August that the upcoming festive season, which runs through the end of the year, would further boost consumer demand for beauty, personal care and wellness products, which was showing early signs of recovery.
Nykaa’s parent company FSN E-Commerce Ventures Ltd said in a statement that its board has approved an agreement between its subsidiary FSN International Pvt Ltd and Apparel Group.
The agreement is for “an omni-channel, multi-branded beauty retail operation business” through an entity joining the Abu Dhabi Global Market in Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates. , Reuters
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