Published on : Nov 08, 2013
Amid the times when Indian industry is snowballing with several foreign brands, Syona Cosmetics Pvt Ltd, a Chennai-based start-up company which has been recently found in June 2012 decided to steer its own ship on the imported giants with introducing its own products specifically suitable for the Indian skin types and salon pricings. These products conform to definite international quality and expectations.
On August 29 of the present year, Syona Cosmetics launched its first skin care product under the chic brand name Estrella Professional. This product is known for its superior quality and safety standards as it is based on the advanced technology sourced from the evident partners in the U.K., Spain, and other European countries. However, Raja Varatharaju, co-founder and director of the company is positive that his company has the immense potential to stage revenues of Rs 600-700 crore in a time span of five years.
At a glance to his early career life, Varatharaju started his career at Voltas in 1999, following which he successfully worked with the Chennai-based FMCG major CavinKare. CavinKare was notably founded by C K Ranganathan - a successful entrepreneur who inspired the shampoo marketing in the era of 1990, Henkel India Ltd and Ford India Private Ltd. Ranganathan’s endeavors influenced Varatharaju to become a successful entrepreneur.
Throughout his career, Varatharaju spent time on various companies and their brand-building techniques and initiatives, and ultimately realized that the salon products for skin care and hair care worth Rs 2,000 crores was a good business opportunity. He also calculated the statistics which drew him to a conclusion that about a little over 50 percent of the hair care industry was profitable and certainly highly organized; the rest 80 percent of the skin care industry featured plenty of imported brands and were truly dysfunctional when it came to business and profits. The skin care industry is under developing, whereas, the hair care industry has well-developed in the country.
Varatharaju also said that he wants his company as a role model for this industry and they are working hard towards developing their own formulations as all the technology and equipment devised in the hair care industry are mainly imported from foreign countries. However, his major oppositions were resources in terms of money and market imposes for high quality standards preferably in small packages.
He further says that, the current hair care products available in the market are mainly imported from the European sectors, most of which are not suited to the Indian skin type. However, this is precisely the point where Syona Cosmetics lead in the industry as it uses a global technology that is well-suited for all Indian skin particularly in terms of melanin management. Syona’s USP is mainly the international quality at affordable prices, he added.
Other products when sold on the market are a minimum of a kilogram or 500 grams. Varatharaju’s key strategy for this is quite innovative and practical. His idea of marketing small packages such as skin care or hair care products normally ranging from values of 100 grams to 500 grams could add value in the market. He says, major portion in larger quantities usually goes waste as the effectiveness or freshness of the substance is far lost when it remains unfastened for a prolonged period.
The products found in Syona Cosmetics are cost-effective and affordable as they are formulated and developed in India and not imported. These products can add value to your salon profits as well as can help you set aside substantial money for future expansion, adds Varatharaju.
At present, Syona Cosmetics have 25 successful products launched in the market with future plans to launch another 50 products in the next six months. As of now, Syona’s products are targeted at most of the salons in India, however, it dreams to climb the ladder of success very soon and target retail outlets, as well as, set up marketing offices and strategic tie-ups in international countries such as South Africa, Dubai, and all the other East Asian countries.
With a keen-focus on the top 10 cities in the country, Syona wants to be a pan-India key player in the hair care industry soon in the next two years. Hair care is an industry that is growing at about 25 percent every year, and Syona hopes to acquire a 30 percent overall market share in the next three to four years. In addition, to this plan it also prepares for clock revenues of 600-700 crore in the next five years of which Rs 100-150 crore will be from retail, Rs 200-250 crore from salons, and the rest of the profit will be from other products marketed overseas.