Nykaa to expand with Rs 100 crore investment, plans to launch private label brands internationally
Multi-brand beauty giant Nykaa plans to invest Rs 100 crore in expanding its retail outlets and fulfilment centres over the coming two to three years and also aims to retail its private label brands abroad.
Nykaa has earmarked close to Rs 100 crore ($15 million) of capex to invest in expanding its brick-and-mortar presence, as well as its fulfilment centres for distribution, ET Bureau reported. The business had this expansion as one of its main objectives for raising money in the primary market at its recent initial public offering.
“We are also investing in fulfilment centres, which are large warehouses- mechanised and tech-driven,” Nykaa’s Group CFO, Arvind Agarwal told the Economic Times in an interview. “So we are investing ahead of the curve building capacity to get closer to the customer. We launched the Guwahati warehouse as earlier we were shipping from Kolkata. Similarly, we launched in Hyderabad, Chennai and are working on many more such geographical expansion and capacity additions.”
The business runs numerous private label brands and product lines under the umbrella of Nykaa Beauty. “In terms of exports, the idea is to take our own brands, such as Nykaa cosmetics and Kay Beauty, which is a celebrity brand outside India,” said Agarwal.
“This would mean that we go online, and sell it on noon.com or Amazon.com. So basically, going there online, to begin with but selectively.”
Nykaa will first tap into markets where there is a large Indian diaspora including the UK, Europe, and Middle East. The business is still fine tuning its strategy for international retail, according to Agarwal.
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