New Delhi: Lotus Botanicals, an online clean beauty brand from Lotus Herbals, is targeting to be a Rs 200 crore business by fiscal year 2025-26 and expecting to achieve Rs 100 crore revenue in the next fiscal year 2024-25, Nitin Passi, chairman, Lotus Herbals told ETRetail in an exclusive interaction.
At the company level, Lotus Herbals grew 30 per cent last year and at the same time Lotus Botanicals’ growth was 170 per cent, Passi shared. This fiscal the company expects the clean beauty brand to grow 150 per cent as compared to the base of last fiscal.
On the company’s long-term growth expectations, Passi said, “We are confident to keep on doubling the business every year at least for the next five years and is expected to grow 15 times as against the current business.”
Further, the company expects the overall business will continue to grow at about 25-30 per cent every year. However, percentage growth will be low in the offline business as it has a larger consumer base.
Lotus Herbals currently manufactures products in its two units – Baddi, Himachal Pradesh and Greater Noida, Uttar Pradesh. And it sources raw materials from various parts of the world and does local sourcing of multiple natural products from across the country.
Business from salons
The company has continued to grow in the offline channels like salons. As of March 2023, it was present in 16,000 salons with Lotus’ professional products. It expects to increase its presence to 25,000 salons by the end of this year.
According to Passi, the overall industry is expected to grow due to good macroeconomic factors, continued growth in India’s GDP resulting in more purchasing power, and increased per capita income.
“Anybody who delivers good quality products and has some kind of differentiation which a consumer needs and their relevancy is high, will be able to ride this growth for the next 10-15 years,” said Passi.
Investments in social commerce and technology
In India, the usage of social commerce has just started. Consumers are looking to get educated about the products from experts. Passi said, “The future of social commerce is very bright. For this, we are experimenting with a couple of social commerce platforms and our website also.”
Sharing about other investments in technology, Passi shared that they continue to invest in technology – augmented reality (AR) and artificial intelligence (AI).
“For Lotus Botanicals, we are going to try a virtual expert like a skin expert. This is going to be a good experiment for us,” he added.