Akums Expands Into Colour Cosmetics by Acquiring Oriflame India’s Manufacturing Division

Key Takeaways

Akums Drugs and Pharmaceuticals will acquire Oriflame India’s manufacturing business for ₹56 crore.
The acquisition, facilitated by subsidiary Pure and Cure Healthcare, includes facilities in Roorkee and Noida, enhancing Akums’ contract manufacturing capabilities.
This move emphasizes the growing investment in India’s cosmetics sector as companies look to diversify into beauty categories.

Acquisition Overview

Akums Drugs and Pharmaceuticals has announced its acquisition of Oriflame India’s manufacturing business for ₹56 crore. This strategic move marks Akums’ entry into the colour cosmetics sector and broadens its contract manufacturing capabilities beyond pharmaceuticals.

The deal, executed through Akums’ wholly-owned subsidiary, Pure and Cure Healthcare, encompasses manufacturing facilities located in Roorkee and Noida, along with a leased warehouse in Noida. These sites are responsible for producing a range of products, including skincare, hair care, wellness, and colour cosmetics. Notably, the facilities are equipped with advanced European production equipment and hold Halal certifications, making them suitable for export opportunities. However, the transaction does not include Oriflame India’s trademarks, marketing, and sales operations. The acquisition is expected to be finalized by the end of August, pending standard conditions.

The rationale behind this acquisition points to the increasing investments being made in India’s cosmetics manufacturing sector. As contract development and manufacturing organizations (CDMOs) seek to diversify their portfolios, venturing into high-growth beauty categories has become a significant trend. This acquisition enables Akums to enhance its manufacturing capacity for domestic and international beauty brands, while also solidifying its role in the supply chain for skincare, hair care, and colour cosmetics.

This strategic expansion reflects a broader industry shift where companies are recognizing the potential of the cosmetics market in India, which is undergoing rapid growth. The investment highlights Akums’ commitment to utilizing its expertise in manufacturing to tap into these emerging opportunities in the beauty segment, ensuring its competitive edge in the evolving landscape.

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