Nykaa penetrates the gulf countries. Through its first international corporation with an apparel group
Through its first international cooperation with Apparel Group, Nykaa penetrates the Gulf countries.
Falguni Nayar, the originator of the business, said that Nykaa will hold 55% of the company’s shares, with the Apparel Group of Dubai holding the remaining 45%.
To strengthen its footprint in the GCC (Gulf Cooperation Council) countries, the Indian cosmetics and apparel shop Nykaa on Thursday announced an alliance with the Apparel Group, a fashion and lifestyle retailer based in Dubai. The remaining 45% will be owned by the apparel firm, leaving Nykaa with a stake of 55%.
By establishing its first global strategic relationship with The Apparel Group, one of the largest retailers in the Middle East, Nykaa is breaking new ground and increasing its presence in the GCC countries.
The company’s founder, Falguni Nayar, said to reporters in Mumbai today, “We look forward to replicating our unique beauty retail value offer across the GCC. She went on to say that because of our benefits, we would be able to create a compelling value proposition in the United Arab Emirates, the Kingdom of Saudi Arabia, Qatar, Oman, Kuwait, and Bahrain.
Nykaa is an online retailer of cosmetics that was established ten years ago. According to Nayar, the company will apply its proven experience in the multi-brand retail sector and its unique beauty playbook to respect particular trends and hyper-personalized shopping experiences in new geographies.
They collaborate with nearby businesses and have some of the best supply chain models, fulfilment processes, and partnerships in the area. We have a partner in the garment sector who is too culturally compatible with us, and together we can create the business of the future in the GCC countries, she concluded.
A new retailer brand name with a professional management team working independently in an omnichannel retail environment will be made as a result of the collaboration. According to Nykaa CEO Falguni Nayar, the two companies will collaborate to launch a multi-brand cosmetics retailing operation in seven GCC countries.
Apparel Group India is working to promote its brand in cities like Vadodara, Indore, Kochi, Trivandrum, Amritsar, and Ludhiana. Over 1,900 retail outlets and more than 75 brands are represented by the Group on all channels.
In addition to holding the franchise rights to several other worldwide brands, including ALDO and Charles & Keith, it just established the first Victoria’s Secret store outside of the US in Mumbai. “Over the years, we have expanded our portfolios to include numerous more brands, including Tommy Hilfiger, Calvin Klein, and ALDO.
We believe ourselves to be leaders in the local retail sector with a focus on sustainability and a digital-first approach. We are interested to learn how both organizations might benefit from one another’s skills and the locally increasing beauty and personal care market. Sima Ganwani Ved, the founder and chairwoman of The Apparel Group, remarked.
She said the hope that the GCC would experience the same level of triumph as Nykaa did in India. The UAE is home to Apparel Group, one of the largest retailers in the Middle East.
Elara Capital predicts a 70% growth as Nykaa share price surges on bonus issue; check record date.
The release of the bonus contributed to Nykaa’s shares continuing to increase on Tuesday, October 4. The stock price surged by about 3.5% intraday on the BSE and NSE, reaching Rs. 1349.6 and 1348.95 per share, respectively.
The counter earlier on Monday jumped 10% intraday before closing over 2.5% higher at Rs 1305 per share after FSN E-Commerce Ventures, the parent company of the e-commerce platform, announced the record date for the bonus issue, which is November 3, in a business filing. On a closing basis during the last two sessions, the stock’s price climbed 6% on the exchanges.
On the foundation of a bullish outlook, domestic brokerage firm Elara Capital projects that the Nykaa share price would increase by 70% from its current level. It has set a long-term target price of Rs 2,211 per share.
The stock reached its 52-week high of Rs 2574 on November 26, 2021, just days after it was first listed on the market. Stunningly, Nykaa shares made their market debut on November 10, 2021, on the NSE with a 79% premium to Rs 2,018 from their issue price of Rs 1,125 per share. When it debuted on the BSE, it had grown to Rs 2,001 by 78% from the issue price.
While the online BPC market in India is expected to grow at a low rate of 17.3% throughout that time, Nykaa is expected to strengthen its Beauty and Personal Care (BPC) revenue at a quicker rate of 32.4% in CY20-25E. Nykaa “may retain its dominance, powered by high return customers/usage base” with a market share of 26.8% in online BPC.
With a 3.3% market share in the online fashion sector, Nykaa’s fashion business is another one that is growing. On a smaller scale, Nykaa’s revenue CAGR in this sector was predicted to reach 60.4% in the years FY23E–25E.
At 8/12 and 20/35 per cent, respectively, India’s online BPC/fashion penetration is lower than that of its global rivals, the US and China. The firm, which started a BUY recommendation on the company, believes that India has a lot of space to advance toward premiumization and online shopping.
edited and proofread by nikita sharma
