French beauty major L’Oréal has acknowledged that its performance in India has fallen short of expectations, with global CEO Nicolas Hieronimus stating that the company is “not satisfied” despite recording high single-digit growth in 2025.
Speaking during the company’s fourth-quarter earnings call last week, Hieronimus said India currently contributes roughly 1% of L’Oréal’s global turnover, making it a relatively small market in the company’s portfolio.
“India is not meeting expectations, and we have a new setup there starting this year,” Hieronimus said, adding that the group has revised its strategic plan for the country and is investing both financially and in talent to accelerate growth.
Growth without market share gains
While the company posted high single-digit growth in India, it did not gain meaningful market share. According to Hieronimus, the lack of share gains reflects organisational transition rather than category weakness.
“We had high single-digit growth, but we did not gain a lot of market share, if any,” he said, attributing the situation partly to the restructuring of leadership and operations.
L’Oréal last year appointed Jacques Lebel as India country manager and introduced a new leadership team to steer its next phase of growth. Hieronimus said he remains “optimistic and ambitious” that performance will improve in 2026.
Revised strategy and category focus
The company has identified dermatological beauty as a major opportunity in India. Under its L’Oréal Dermatological Beauty (LDB) division, the group recently launched brands such as CeraVe and La Roche-Posay in the market.
“These brands are starting very well, but they are still very small,” Hieronimus said, signalling scope for expansion.
L’Oréal also maintains strong positions in categories such as hair care and hair colour, with brands like Garnier leading in select segments. However, the CEO emphasised that the company needs to be “more ambitious” overall in the Indian market.
To strengthen its local capabilities, L’Oréal has invested in manufacturing and technology infrastructure. It recently announced the opening of its first dedicated Beauty Tech centre in Hyderabad, aimed at developing digital platforms and AI-led solutions for its global operations.
Long-term potential
Hieronimus noted that India, as one of the fastest-growing major economies with rising disposable incomes and an expanding millennial consumer base, presents long-term opportunity for the beauty category.
“Today, India is roughly one per cent of our turnover, which is very small. So it can only go up,” he said.
L’Oréal India, a wholly owned subsidiary operating since 1994, markets 26 brands across mass, professional and luxury segments. These include L’Oréal Paris, Garnier, Maybelline New York, NYX Professional Makeup, Kérastase, Lancôme and Yves Saint Laurent, among others.
The company operates manufacturing facilities in Chakan (Maharashtra) and Baddi (Himachal Pradesh), along with research and innovation centres in Mumbai and Bengaluru.
As it recalibrates its India strategy with fresh leadership and increased investment, L’Oréal is positioning the market as a priority geography in its global growth roadmap, with expectations of stronger momentum from 2026 onward.
