Elder forays into haircare market; ties up with Richfeel Health
New Delhi: FMCG company Elder Healthcare Tuesday said it has inked a pact with Richfeel Health and Beauty to foray into the estimated Rs 12,800 crore haircare segment in the country.
The company, which already manufactures skin care products, expects a turnover of about Rs 15 crore by the end of 2013-14 from hair and skin care verticals.
"Elder Healthcare has tied up with Richfeel Health & Beauty, which runs India's largest chain of Trichology (hair and scalp clinics) and also an eminent player in the salon products range, to foray into the haircare market estimated at Rs 12,800 crore," Elder Healthcare Managing Director Anuj Saxena said in a statement.
As per the agreement between the two firms, Elder Healthcare will market and distribute Mumbai-based Richfeel's professional haircare products across the country except for Western India, the company said.
Saxena said the company would initially focus on metro's and Tier-II cities for marketing and distributing Richfeel Health products.
"Induction of Richfeel hair care range would further strengthen our product portfolio. Looking at the robust growth of salon industry there is an ideal opportunity for company to offer Richfeel's products with clinical brand image to salon industry," Saxena said.
Elder Healthcare manufactures as well distributes various products through licensing agreements. It's product portfolio includes deodorants, mouthwash, among others.
Shares of Elder Healthcare were trading at Rs 70.80 on the BSE in late afternoon trade, up 1.51 percent from their previous close.