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Oriflame targets Rs 3.60 billion turnover by 2004

Riding on a new product range for the masses, the Indian arm of Swedish cosmetics company Oriflame International has set a Rs 3.60 billion turnover target by the year 2004, a top company official said.

''We plan to grow eight to ten times our current turnover of Rs 360 million in the next five years with our focus widening to include products for the masses,'' Lajinder Bawa, chief executive officer of Oriflame India Private Limited, said.

Oriflame India is a joint venture with Rollscon (India) Private Limited to market the Swedish brand of cosmetic products through 'direct selling'.

The Indian operations started in 1996. The company is expected to break even in the calendar year 1999. ''The sales for this year have been above expectations,'' Bawa claimed.

Launching a new range of skin and hair products for the masses, the CEO said the company had so far concentrated on building its brand in the premium and mid-range segments.

''Now we seek to go for products with mass appeal through competitive prices. The lower costs have become possible with great level of indigenisation of product packaging. The new range will contribute a substantial chunk to our turnover target,'' he added.

Without specifying the amount, Bawa said the company will make ''substantial investments'' in manpower, training and information technology for achieving the five year sales target.

The company is planning to make India an export base for its Asian and European markets. ''A few trial shipments have been completed. But it is too early to set export targets,'' he said.

On plans to set up a manufacturing unit in the country, Bawa said the company may consider setting up a unit on achieving its turnover target by 2004.

In 1998, the direct selling company with 25,000 active distributors has given Rs 640 million as bonus even while they made direct profits of Rs 90 million, Bawa said.

The company is also looking at developing more products especially for the Indian market and would launch one more new catalogue this calendar year.

Currently, the company has a portfolio of over 139 products in all cosmetic categories of skin care, hair care, colour cosmetics, body care and fragrances.

UNI

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