Nykaa Establishes New Oman-Based Subsidiary
The parent company of the massive beauty e-commerce company Nykaa, FSN E-Commerce Ventures, has established Nysaa Cosmetics SPC as a new wholly owned subsidiary in Oman. The new company would engage in the "international and domestic" sale and trade of beauty and personal care (BPC) products, such as cosmetics, fragrances, and other associated items, through both online and offline channels, according to a filing Nykaa made with the exchanges. Nessa International Holdings Limited, a step-down subsidiary of the corporation, has established a new wholly owned subsidiary in Oman, Nysaa Cosmetics SPC, the company said. OMR 30,000 (INR 6 lakh) was used as the initial share capital to establish the new subsidiary. Nessa International, a subsidiary of Nykaa, will own a 100% share in the recently listed business.
Nykaa’s Global Expansion Plan
The opening of Cosmetics SPC in Oman is consistent with Nykaa's objectives to expand globally, with a particular emphasis on the Middle East. The company entered the Gulf Cooperation Council (GCC) area in 2022 by partnering with Apparel Group, one of the biggest omnichannel retailers in the United Arab Emirates. Since then, Nykaa has established subsidiaries in a number of GCC nations in an effort to reach new clientele and serve the local Indian expat community. The massive beauty e-commerce company established a wholly owned subsidiary in Qatar in July of last year. In response, the business established Nysaa Trading LLC, a new wholly owned subsidiary, in Saudi Arabia. Last year, it also opened the first Nysaa physical store in Dubai.
Financial Outlook of Nykaa
Over the next four years, Nykaa hopes to open 70 outlets under the Nysaa brand across the GCC, aiming for a 7% market share in the GCC beauty industry. In the second quarter (Q2) of the fiscal year 2024–25 (FY25), Nykaa’s consolidated net profit increased by 66.3% to INR 12.97 Cr from INR 7.8 Cr in the same period last year. Operating revenue increased 24.4% from INR 1,746.11 Cr in Q2 FY24 to INR 1,874.74 Cr in the reviewed quarter. Nykaa's stock ended the trading session on the BSE 3.3% higher, at INR 170.73, on 23 January.
About Nykaa
In addition to redefining the art of e-retailing beauty and personal care in India since its introduction in 2012, Nykaa asserts that it has played a significant role in supporting the development of an ecosystem that was only just getting started. With over 72 Luxe and On-Trend and Kiosk Stores, an ever-expanding online community for beauty enthusiasts, a beauty helpline, and a variety of domestic and international brands, luxury and prestige brands, premium brands, niche and cult brands, as well as expert advice and videos, Nykaa goes above and beyond to provide its customers with only the best. With over 2400 brands that are 100% genuine, Nykaa provides a carefully chosen assortment of products in the areas of makeup, skincare, haircare, bath and body, fragrance, grooming tools, personal care, and health & wellbeing.
Nitin Konde
