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Marico to launch subsidiary Kaya Youth

Published
today Feb 8, 2019
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Marico has signed a licensing agreement with the personal care brand Kaya and will launch Kaya Youth as a skincare brand. Marico will pay royalties to Kaya from Kaya Youth sales as part of the agreement. 

Kaya Youth will launch as a skincare brand as a Marico and Kaya partnership - Kaya Clinic- Facebook


Marico is working on reducing its dependency on sales from its two main product categories, hair oil and edible oil. As part of this, the brand is moving into the skin care section of the market and will launch a range of skin care products with Kaya aimed at younger customers. This move is in tandem with Kaya’s own rebranding that has come five years after it de-merged from Marico. As Kaya is a separate entity to Marico, the latter will pay royalties to the former as part of the agreement.

"While Kaya has high brand salience, distribution is limited to mostly its own clinics,” Saugata Gupta, the managing director at Marico, told ET Bureau.

“Marico's new range will be at a mass-premium level to make it more accessible and also have a wider distribution.

"Kaya has a thorough understanding of India’s skin and hair care needs. The idea is to use its innovation and customer insights and develop a more scalable brand," added Gupta.

Kaya was originally launched by Marico’s founder Harsh Mariwala in 2002 as a skincare brand. The brand recently updated its name to just Kaya and has also forayed into hair care.

Kaya has over 100 skincare clinics and reported sales of Rs 409 crore ($61.5 million) in the 2018 financial year with a reported net loss of Rs 19.8 crore.
 

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