Ayurvedic Beauty Brand Kama Ayurveda Ventures into UK Market

Renowned skincare and beauty brand, Kama Ayurveda, is set to make its mark in the global beauty and wellness market. Co-founder and CEO Vivek Sahni announced the company’s plans to expand beyond India, with the UK serving as the initial test market in 2023 followed by other locations in Europe and the US.

Kama Ayurveda, a popular skincare and beauty brand, is making its way into the UK market. The company’s co-founder and CEO, Vivek Sahni, revealed their plans to expand internationally, starting with the UK as a “test market” in 2023. Their aim is to eventually extend their presence to other parts of Europe and the United States.

“Our e-commerce platform in the UK will immerse consumers into the brand and customers will be able to experience our iconic ranges as well as educational content on the ancient yet codified science of Ayurveda,” Sahni told ETRetail.

We always had a presence in the global market via our India-specific website, however, launching the brand in the UK means that the products will now be shipped from the UK as well. Now, we have a warehouse in the UK as well,” he added.

The UK debut will also mark the launch of an exciting brick-and-mortar store in Central London. This move marks their entry into the British market, bringing their authentic and natural beauty products to a new audience. The store will serve as a physical space where customers can explore and experience Kama Ayurveda’s offerings firsthand. It’s an important step for the brand’s expansion and a great opportunity for people in the UK to discover the benefits of Ayurvedic skincare and wellness.

“We will be opening one store and one shop-in-shop by the end of the year. So, our store will have an ayurvedic doctor, and will also give consultations for treatments of skin and hair,” Sahni also said.

In India, Kama Ayurveda Pvt. Ltd is also expanding its reach by adding 10 new stores this fiscal year, bringing the total to 57. These stores include recent openings in Gwalior, as well as upcoming locations in Bareilly, Thiruvananthapuram, Ranchi, Siliguri, Jodhpur, and Goa. Additionally, the company collaborates with retailers like Shoppers Stop through shop-in-shop outlets, with 70 such partnerships currently in place. However, they did have to close eight stores during the pandemic, mainly located in cities with airport outlets such as Raipur and Amritsar.

Kama Ayurveda received a significant investment of ₹100 crore from Spanish perfume maker Puig in 2019. Despite the challenges posed by the pandemic, the company remains committed to expanding globally and plans to open its first standalone store in the UK by spring of next year. Alongside physical stores, they will establish an online sales platform.

The company’s financial performance has been promising, with net sales reaching ₹135 crore in the fiscal year 2022. Kama Ayurveda has successfully recovered from the setbacks of the pandemic, experiencing a 15% increase in business compared to the previous year. Over its two-decade journey, the company has grown from offering just 10-12 products to now having an extensive range of 112 products available in their stores.

The demand for Ayurvedic products is on the rise, both in India and globally. According to the Union Minister of Ayush, the market for Ayurvedic products in India was projected to reach $8 billion by 2022. ResearchAndMarkets.com estimates that the Indian Ayurvedic products market will reach ₹1,536.9 billion by 2027, exhibiting a compound annual growth rate of 19.78% until then.

During the pandemic, Kama Ayurveda witnessed a significant shift in sales, with around 85% of their sales coming from online channels. This proportion has now reduced to 35-40%, with half of their online sales originating from their own website and the other half from platforms like Nykaa. Their competitor, Forest Essentials, also announced plans to expand internationally, targeting the UK as their first international market within the next three years.

Puig’s majority stake acquisition in Kama Ayurveda further solidifies the partnership between the two brands. Puig, a well-established Spanish beauty and lifestyle brand, aims to support Kama Ayurveda’s growth in the Indian market while leveraging its expertise to expand globally, including their entry into the UK market in 2023. The collaboration will focus on brand building, technology, and skincare and perfumery categories.

Founded in 2002, the brand offers a wide range of organic beauty products across various categories such as skin, hair, and body. They currently operate 54 exclusive stores in India, with plans to increase that number to 60 by the end of 2022. In addition to their direct-to-consumer (D2C) model, Kama Ayurveda follows a shop-in-shop retail concept and has partnerships with 70 outlets, including Shoppers Stop. During the pandemic, they had to permanently close eight stores located near airports.

In the financial year 2020-21, Kama Ayurveda reported operating revenue of ₹96 crore, with a loss of ₹24 crore. Puig, established in 1914, is a renowned fashion and beauty brand with a wide product portfolio that includes popular names such as Carolina Herrera, Paco Rabanne, Jean Paul Gaultier, and many others. The acquisition of Kama Ayurveda strengthens Puig’s wellness category and expands its geographical presence.

Puig’s investment in Kama Ayurveda reflects their interest in the Indian market and their strategy to establish a strong foothold in India while exploring opportunities in key international markets. With a global presence in over 150 countries, Puig operates in 29 countries through its offices.

The ayurvedic D2C brand sector has witnessed significant fundraising activities in recent months, with companies like NirogStreet and TAC securing multimillion-dollar investments. Market reports suggest that the Indian ayurveda market is poised for substantial growth, projected to increase from ₹30,000 crore in 2018 to ₹71,000 crore by 2024, with a compound annual growth rate of nearly 16.06% until then.


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