Diversified FMCG company, CavinKare has entered professional beauty products category, which is heavily dominated by multi-national companies.

The company is testing the waters with the launch of ‘Raaga Professional’ brand of hair care products in Chennai and Delhi. After six months, the products will be launched in 20 big cities. The company plans to come out with a skincare range too.

“The professional haircare segment is witnessing a massive growth with an increase in the number of salons and increasing trend of consumers wanting to look good. CavinKare would focus its resources to the needs of the large number of mid-segment salons,” said CK Ranganathan, CMD, CavinKare.

According to Ranganathan, the estimated business for salon products in the top 20 cities is around Rs 1,200 crore with less than 40 per cent contributed by organised professional players and the rest by retail product manufacturers. The company has been working on the range of haircare products for over three years at its research and development unit in Guindy, near Chennai.

Raaga Professional targets the 60 per cent market, which can upgrade to mid-segment professional products from retail products. Most of the known brands in professional hair care such as Revlon, Shwarrzkopf and L’Oreal fall in the premium category. The mid-segment is less crowded with few brands such as Matrix.

With the new product category, CavinKare has also revived its shampoo brand ‘Raaga’ which had been lying dormant for the past four years.

In hair care, Raaga’s range will include hair colours, shampoos and conditioners. In hair colours, the brand is also trying to address concerns like longer application time and the colour sticking to the scalp. Ranganathan said Raaga Professional has also got in noted hair expert Nisarg Mavani to train hairdressers in Chennai and Delhi for the launch.

The company targets Rs 2 crore revenue from sales in Chennai and Delhi in the first six months, and will spend 25 per cent of the revenue on marketing. After skincare products, plans are afoot for ‘Raaga’ brand retail beauty products too. CavinKare also plans to broaden the professional range with a premium brand.