L’Oréal, the French cosmetics company, is planning to establish one of its largest Global Capability Centres in Hyderabad, according to reports. This new hub, separate from the company’s existing research facilities in Mumbai and Bengaluru, will handle global technology, innovation, and research initiatives. L’Oréal has begun searching for senior leadership for the centre, including candidates from its Paris headquarters. The Hyderabad project was a key topic during a recent visit by the company’s global board to India, led by CEO Nicolas Hieronimus.
The expansion highlights L’Oréal’s growing focus on the Indian market. The company, which owns brands such as Garnier and Maybelline, operates three major research centres in France and regional hubs across the US, Japan, China, Brazil, South Africa, and India. In July, Jacques Lebel was appointed as L’Oréal India’s country manager, taking over from Aseem Kaushik. Lebel has held senior positions at L’Oréal as well as at global consumer goods companies including Procter & Gamble and AB InBev.
The move comes amid a slowdown in L’Oréal India’s growth, which moderated to 5 percent in FY25, compared with 14 percent in the previous year and 30 percent in the two years prior. Rising competition from youth-focused direct-to-consumer brands has contributed to the moderation.
Hyderabad was selected as the location for the new Global Capability Centre. L’Oréal currently holds around 8 percent of India’s face-care market, well behind category leader Hindustan Unilever, which controls over 40 percent. India contributes just over one percent of L’Oréal’s annual global sales, amounting to more than Rs 41 billion, making it the 15th-largest market for the company. L’Oréal expects India to become one of its top ten markets in the coming years, with projected annual revenue reaching Rs 1 billion.
