Modi Gp enters cosmetics mkt

The Rs 2,500 crore K K Modi group on Tuesday made a foray into the fast-growing cosmetics market, eyeing a ten per cent share of the Rs 800 crore segment.

Serendipity Cosmetics, a 100 per cent owned subsidiary of the group, launched various products like lipsticks, nail polish and `kajal', under the 'ColorBar' brand. "The domestic colour cosmetics segment is witnessing a

30 per cent annual growth and we are hoping to corner a 5-6 per cent market in the next 12 months and gradually increasing it to 10 per cent by March 2006," Serendipity Cosmetics Managing Director Samir Modi said.On the company's investment plans, Modi said the venture was being financed by the group.

"We would be investing Rs 2-3 crore over the next few months for expansion of the product range and marketing," he said.

The company, which hopes to clock Rs 20 crore business in the first year of operations itself, is also looking at exporting the products by the next year.

"We would enter the overseas market by 2005 and are looking at Russia, rest of Europe and the US," Modi said. The domestic cosmetics market is currently equally divided between the organised and the unorganised sectors.

Serendipity would initially focus on northern and western markets of India before spreading across the country over a 12-month period.