Modi Enterprises is strategizing to make Colorbar, a cosmetics firm, publicly traded within the next three years. This move reflects their confidence in the strong growth potential of the Indian beauty and personal care sector. Samir K Modi, the managing director, outlined that Colorbar is projected to achieve a revenue of INR 1,000 crores in the upcoming fiscal year and is set to broaden its presence in international markets.
The company presently possesses and manages the Colorbar, 24Seven, and Modicare brands.
Modi stated that among these, Colorbar is experiencing the most rapid growth and will be the first to undergo an initial public offering, whereas 24Seven, currently incurring losses, is anticipated to achieve financial recovery by FY25.
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“Collectively, these brands yield approximately INR 3,000-3,500 crore in revenue. However, we anticipate Colorbar’s growth to reach 50% this year. Coupled with our strategy to expand exports to international markets, we believe Colorbar possesses the potential for even swifter growth,” remarked Modi.
As per a report by Redseer, India’s beauty and personal care market is poised to exhibit the most rapid expansion among similar nations, boasting a compound annual growth rate of 10% from 2022 to 2027. This surge is anticipated to elevate the market size from its current $19 billion to $30 billion.
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Colorbar reported a revenue of INR 530 crore in the fiscal year 2024. Over the subsequent three years, it is projected that exports will account for 10-15% of Colorbar’s overall cosmetics business, he mentioned.
Regarding Godfrey Phillips India, the primary enterprise of Modi Enterprises, announcing intentions to divest from 24Seven, Modi clarified that he personally is not actively seeking to sell the business. He emphasized that the ultimate decision will be made by the board.
Last year, the 24Seven business experienced a growth of 19%, boasting a total of 157 stores. Plans are underway to open at least 100 additional stores within this fiscal year.
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