Global beauty giant Estée Lauder Companies has acquired the remaining 51% stake in Indian luxury skincare brand Forest Essentials, taking full ownership of the company as international beauty players intensify their focus on India’s rapidly growing premium cosmetics market.
The US-based group, which owns brands such as MAC Cosmetics, Bobbi Brown, and Clinique, first invested in Forest Essentials in 2008 and increased its stake to 49% in 2020 before completing the full acquisition.
A Strategic Bet on India’s Prestige Beauty Market
The deal highlights how multinational cosmetics companies are expanding aggressively in India, where a young population, rising incomes, and growing digital retail adoption are accelerating demand for premium beauty products.
According to Stéphane de La Faverie, the acquisition comes at a pivotal moment for both the brand and the Indian beauty market.
He noted that prestige beauty currently represents only about 10% of the overall beauty market in India, leaving significant room for growth compared with more mature global markets.
Taking Luxury Ayurveda Global
Founded by Mira Kulkarni, Forest Essentials has built its reputation around luxury Ayurvedic skincare, combining traditional Indian wellness practices with modern cosmetic science.
Kulkarni said the partnership aims to position “Luxury Ayurveda as a globally respected pillar of modern beauty.”
As global consumers increasingly gravitate toward wellness-oriented and natural formulations, the brand’s Ayurvedic positioning could become a strategic differentiator for Estée Lauder’s global portfolio.
Expanding Manufacturing and R&D in India
The acquisition could also strengthen Estée Lauder’s presence as a manufacturing and research hub in India. The company is exploring partnerships to localise production while retaining Forest Essentials’ existing R&D and manufacturing capabilities.
This approach would allow the company not only to distribute its global brands in India but also to build a stronger production and innovation base in the country.
Unlocking New Consumer Segments
Despite operating in India for more than two decades, the market currently contributes less than 1% of Estée Lauder’s global revenue. However, the company sees long-term potential driven by the rise of India’s middle class and younger consumers entering the premium beauty segment.
To broaden access in the price-sensitive market, Estée Lauder has also begun offering smaller product pack sizes, which have helped attract new consumers in recent quarters.
Digital retail platforms such as Nykaa have also played a key role in expanding reach, enabling the company to access consumers across more than 19,000 pin codes in India.
India as a Long-Term Growth Market
The acquisition comes amid heightened competition among global beauty giants including L’Oréal, Unilever, and Shiseido, all of which have been stepping up investments in India.
With demand for prestige beauty rising and wellness-driven products gaining global traction, Estée Lauder’s full acquisition of Forest Essentials signals a long-term commitment to positioning India as both a key growth market and a global innovation hub for luxury Ayurveda-based skincare.
