Homegrown cosmetics brand Colorbar to go public in 2027
What's the story
Colorbar Cosmetics, one of the leading names in India's beauty sector, plans to launch an Initial Public Offering (IPO) in early 2027.
The company's CEO, Samir Modi, disclosed this strategic move to Reuters.
The decision comes on the heels of a massive revenue surge this fiscal year, thanks to innovative product designs and expanded retail presence.
Expansion strategy
Revenue growth and future plans
Modi said Colorbar plans to double its revenue to over ₹1,000 crore in the fiscal year beginning April 1.
This ambitious target will be met with new product launches, innovative packaging designs, and store renovations.
The company is also considering acquisitions of international brands as part of its growth strategy.
Valued between ₹2,500 crore and ₹3,500 crore, Colorbar's IPO proceeds will strengthen its skincare and fragrance lines.
Industry hurdles
Market challenges and competition
Despite the promising outlook, Colorbar is up against stiff competition from domestic brands like Sugar Cosmetics and MyGlamm, and international giants like Estee Lauder's Bobbi Brown and MAC.
The beauty sector has witnessed a downturn in stock prices due to concerns over profit margins amid growing competition.
Addressing these challenges, Modi highlighted Colorbar's plans to launch 15-20 new stores this fiscal year, apart from its existing 100+ outlets across India.
Global reach
International expansion and export revenue
Colorbar, which earns most of its revenue from the Indian market, is also looking to expand its international footprint.
Modi disclosed that the company plans to generate up to 25% of its revenue from exports in the next five years.
This ambitious plan entails a strategic push into markets in the US and the Middle East.
The company's diverse product range includes lipsticks, foundations, serums, moisturizers, etc,. catering to a wide array of beauty needs.