L'Oréal is establishing one of its largest global capability centres in Hyderabad, separate from its existing Indian research facilities in Mumbai and Bengaluru, as reported by The Economic Times (ET). The centre will support global technology, innovation and research for the French beauty group. The company has begun looking for the project’s senior management, including candidates from its Paris headquarters. The initiative was a key agenda item during a visit by L'Oréal's global board to India in Oct ...

Core Viewpoint - Kering SA is in negotiations to sell its beauty business to L'Oréal SA for approximately €4 billion ($4.7 billion), marking a strategic move by new CEO Luca de Meo to address challenges facing the luxury brand [1][2]. Group 1: Company Actions and Leadership Changes - The potential sale of Kering's beauty division would be the first major strategic decision under CEO Luca de Meo, who recently took over from Francois-Henri Pinault [2]. - Kering's beauty division was launched in 2023, following the acquisition of cologne maker Creed for an estimated €3.5 billion, aimed at enhancing its beauty platform [4]. - The previous CEO, Francois-Henri Pinault, announced his resignation after a series of profit warnings, with the Pinault family holding a 42% stake and 59% of voting rights in Kering [3]. Group 2: Market Context and Challenges - The discussions for the sale come amid a slump in Chinese demand and the potential impact of higher US tariffs on Kering's business [2]. - The deal could be announced as early as next week, although there is a possibility that negotiations may not reach a conclusion [1].

Core Insights - L'Oréal USA has appointed Alexis Perakis-Valat as CEO, succeeding David Greenberg, who will take on the newly created role of chairman of L'Oréal USA, effective January 1, 2026 [1][2][3] Leadership Changes - Alexis Perakis-Valat is currently the president of L'Oréal's Consumer Products division, which is the largest within the group, and will be succeeded by Fabrice Megarbane [2] - David Greenberg, who has been with L'Oréal for 32 years, led the division to nearly 12 billion euros in sales, up from around 8 billion euros in 2021 [3][4] Market Strategy - The creation of the chairman role highlights the strategic importance of the U.S. market for L'Oréal's future growth [3] - Greenberg emphasized the need for agility and a culture that feels small despite the company's size, focusing on external relations and public affairs in his new role [5] Consumer Trends - Greenberg noted that consumer confidence has improved throughout 2025, with a need to cater to a diverse range of consumers with varying spending abilities [6][7] - The Consumer Products Division has seen significant growth, particularly in emerging markets, which accounted for 50% of its growth in 2024 [11] Financial Performance - The Consumer Products Division reported a 1.1% rise in sales on a reported basis and a 2.8% increase in like-for-like terms, reaching 8.41 billion euros in the first half of 2025 [15] Innovation and Sustainability - Perakis-Valat has driven innovation within the division, launching key products and enhancing beauty services powered by technology [10] - The division has also made strides in sustainability, redesigning product ranges and launching refill pouches with 60% less plastic [14]