Cosmetic industry - a boon for Indian economy

New Delhi, Sep 16 (UNI) The small scale based cosmetic industry of of the country is not only playing an important role in our economic development and growth but has also attained the distinction of being the second largest exporter of herbal cosmetics in the world after China.

The emergence of electronic media and entertainment industry in a big way has not only enhanced the demand for cosmetic products within the country but also enlarged the user base among all strata of economy class.

The economic liberlisation accompanied with the reduction in excise and custom duties has encouraged the industry to improve its quality standard by adopting modernisation with the infusion of imported plant and machineries. This sector which was witnessing around five per cent annual growth till 1993 is now witnessing around 25 per cent annual growth. A part of this credit should also go to the sudden emergence of Indian beauties in the world scenario which had also attracted the youth towards the more use of these cosmetics.

The small scale cosmetic industry is currently providing a direct employment to the extent of over two lakh people while creating indirect employment avenues for another four lakh people in the country.

In India the need of cosmetics is seen from very ancient days.

People were using a variety of cosmetic products like Kajal, Surma, Bindi, Sindoor, Kumkum, Mehandi, Altaa and Alaras both for curative purpose as well as for beauty. Indian merchants used to trade herbal products to adjacent countries and afar. The ancient cosmetics were primarily extracts from the plant sources like turmeric (haldi), sandalwood, nuts and yellow and red clay of few regions, ashes (bhasmas ) of different minerals and herbs.

The skin care market is estimated at around Rs 850 crore in India. Most consumers use only face cream and moisturisers in the off-city areas. The demand of sun screens, toners, cleansers, astringents, dark circle removing creams, anti wrinkle creams, day and night creams are having steady growth in recent years.

Moisturising lotion, fairness creams and face cleaner are the popular categories in the skin care segment and account for approximately 60 per cent of skin care segment.

Similarly, the size of hair care market is estimated at over Rs 1000 crore, 50 per cent of which is from the shampoo sector. The high growth segments in the cosmetic sector-enamels and lipsticks account for around 65 per cent of total colour cosmetic sales in India.

The application of cosmetics varries from person to person and from region to region on account of climatic and environmental factors and the products are made accordingly to suit the people of that region. This is possible through large scale research and development works that are being carried out by these companies.

With centuries of experience of extracting the best from natural dyestuff, flowers, roots, oils etc, India today manufactures a wide range of quality cosmetic production which have gained acceptance of consumers all over the world. India herbal cosmetics currently is being exported to countries primarily in middle east and South east Asia. Cosmetic importing countries are UAE, the US, Netherlands, South Arabia, Germany, Japan, Malasia, Nepal, Srilanka, UK, China, Indonesia, France, Russia and Italy.

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