Indian manufacturers of ayurvedic and herbal cosmetic products are eyeing West Asian countries for

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their growth. Companies such as VLCC, Dabur and the Shahnaz Husain group are expanding their presence in these countries and expect sizable revenue from sale of their products in the UAE, Kuwait and Saudi Arabia, among others.

VLCC, which operates slimming and beauty care centres, is planning to open its centres in Qatar, Kuwait and Saudi Arabia over two years. Sandeep Ahuja, chief executive officer international operations, VLCC, said, “The overseas operations account for 24 per cent of our sales revenue and expansion in the mid-east will form an important part of our future growth strategy.” VLCC made its debut in the overseas market in December 2005 in Dubai. The company, which sells close to 100 skin & healthcare products globally, alters the packaging according to the market. It already owns slimming and beauty care centres in Abu Dhabi, Sharjah, Muscat, Bahrain and Kathmandu.

For Dabur India, the West Asian market reported 47 per cent growth in sales during the first nine months of the present fiscal year. The company claimed that the key category drivers for growth were hair cream, toothpaste and olive oil among others.

The Shahnaz Husain Group already has operations in Saudi Arabia and Israel. “We sell our health and wellness products across the globe. Citizens are keen to know about ayurveda and are looking forward to products that don’t have side effects,” said Shahnaz Husain, founder and chairperson, Shahnaz Husain group. “West Asia is an important market for us and we are expanding our operations in the region.”

Industry observers said that the high number of Indians in these countries coupled with relatively less legal formalities are prime factors for attracting the companies. Purnendu Kumar, associate vice-president of Technopak, said, “West Asia is an open market. Getting a franchisee is easy, unlike in the US, where one has to get FDA clearance besides several other formalities.” By launching various herbal and ayurvedic products, the Indian companies are creating a new concept. “The UAE, Qatar, Oman, Saudi Arabia, Kuwait and Bahrain are the most attractive markets in the region,” added Kumar.