eauty care is big business. Estimated at Rs 1,800 crore, the Indian cosmetic industry is growing at 25 per cent. But cosmetic companies are not content with just sitting on the shelf. The business model that has lately caught the fancy of most players - whether it is a personal care major such as Hindustan Lever or a haircare biggie such as L�Oreal or even a herbal cosmetic company like the Shahnaz Husain Group - is the extension of cosmetic brands to services.

A glimpse of the market explains why this segment has become a favourite with companies. KSA Technopak puts the market for beauty services at Rs 2,800 crore and believes that this segment will grow at a compounded annual growth rate of nearly 8.5 per cent to about Rs 4,200 crore by 2010 (the top end is growing at 20-25 per cent). The market is largely unorganised, but is expected to change with the growing interest of personal care product companies, says the retail consultancy firm. ... more