March 30, 2013: Elder Pharmaceuticals has announced its joint venture with one of the leading Japanese cosmetic companies Kose Corporation. This joint venture has been formed to manufacture and sell cosmetics in India. The cosmetics initially will be manufactured in the Elder Pharmaceuticals plant in Himachal Pradesh.
The Joint Venture would be named as Kose Elder (India) Pvt. Ltd. and Kose will have 60 per cent in the JV and Elder Pharma will have the rest 40 per cent. Kose Elder plans to start of the new project in next three months and for this the company is planning to invest couple of million dollars. Elder Pharma plans to give full support to Kose Corporation which includes distribution and manufacturing support so as to bring top end cosmetic brands of Kose into India. The cosmetics that Kose Elder plans to bring into India include ointments, lotions and creams.
The Indian cosmetic industry is estimated to expand at a CAGR of around 17 per cent during 2013-15 because of the rising fashion consciousness among people in India. Both the companies are expecting incremental revenues of Rs.30-40 crore in the first year of operations.