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Beauty Brand Acquisitions Reshape India’s Expanding Skincare Market
Large companies are buying smaller Indian skincare and beauty brands.
Nykaa bought more of Earth Rhythm and approved an investment in Aminu.
Other companies have also bought brands such as Minimalist, RAS Beauty and Forest Essentials.
Experts say India’s beauty market is growing quickly.
More people are using several skincare products instead of just one or two.
Online shopping and quick-commerce services are helping brands reach more customers.
Large companies can give small brands money and wider distribution.
However, they must avoid changing the brands so much that customers lose their trust.
FSN E-Commerce Ventures acquired an additional 24.2% stake in Earth Rhythm for about Rs 9.4 crore.
Nykaa recently approved a Rs 32 crore investment for a 51% stake in skincare brand Aminu.
Major companies including L’Oréal, Wipro Consumer Care & Lighting, Hindustan Unilever, Dabur and Godrej Consumer have acquired Indian beauty brands.
Experts attribute the acquisition surge to India’s growing beauty market, rising skincare routines and wider e-commerce access.
Analysts warn that buyers must preserve D2C brands’ agility and authenticity while adding scale, distribution and capital.
- Who
- FSN E-Commerce Ventures, Nykaa and other major beauty and consumer-goods companies, along with Indian D2C beauty brands.
- What
- Large companies are acquiring stakes in Indian skincare and beauty brands as the D2C sector expands.
- Where
- India, including Mumbai-based brand Aminu and consumer markets beyond major metros.
- When
- The latest Earth Rhythm transaction was announced earlier this week; other transactions cited occurred earlier in 2025 and over the previous three years.
- Why
- Companies are seeking fast access to digitally engaged consumers, specialist formulations, repeat purchases, high margins, brand loyalty and growth through wider distribution.
Key facts
- Earth Rhythm deal
- FSN E-Commerce Ventures completed the acquisition of an additional 24.2% stake for around Rs 9.4 crore.
- Aminu investment
- Nykaa approved a Rs 32 crore investment for a 51% stake in the Mumbai-based skincare brand.
- Market forecast
- A RedSeer report predicts India will become the world’s fourth-largest beauty and personal care market by 2030, reaching $40 billion.
- Recent acquisition examples
- L’Oréal acquired Innovist’s brands; Wipro Consumer Care & Lighting acquired a majority stake in Dermatouch; and Estée Lauder added Forest Essentials.
- Earlier acquisitions
- Hindustan Unilever acquired Minimalist, Dabur acquired RAS Beauty and Godrej Consumer acquired Muuchstac in 2025.
- Acquisition spending
- More than Rs 17,000 crore has reportedly been spent acquiring Indian beauty brands over the last three years.
- Skincare margins
- Experts say skincare gross margins can reach 65% to 75%, supported by repeat purchases and customer loyalty.
Quotes
Santosh Sreedhar
Partner at Avalon Consulting
“We have moved from two or three basic products to three-step, five-step and even seven-step skincare routines, involving cleansers, toners, serums, targeted treatments, moisturisers, sunscreens and more. The growth potential is significant because skincare is increasingly becoming a structured daily routine rather than a single-product purchase.”
financialexpress.com
“These brands offer science-led formulations, proprietary R&D, younger digital audiences and the ability to launch products in weeks rather than years.”
financialexpress.com
Sources
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