According to www.globalcosmeticsnews.com, Akums Drugs and Pharmaceuticals has agreed to acquire the manufacturing business of Oriflame India for ₹56 crore, marking its formal entry into colour cosmetics contract manufacturing and expanding its non-pharmaceutical production capabilities.
Transaction scope and assets acquired
The acquisition is being executed through Akums’ wholly owned subsidiary Pure and Cure Healthcare. It includes two fully operational manufacturing facilities — one in Roorkee and another in Noida — along with a leased warehouse also located in Noida. These sites collectively produce skincare, hair care, wellness, and colour cosmetics products. All facilities are equipped with European-sourced production equipment and hold Halal certification, enabling export compliance across key markets including the Middle East and Southeast Asia.
The deal explicitly excludes Oriflame India’s trademarks, marketing infrastructure, and sales operations. Completion is scheduled for end of August 2026, pending customary regulatory and contractual conditions.
Strategic rationale and sector context
This move reflects a broader industry trend: contract development and manufacturing organisations (CDMOs) in India are actively diversifying beyond pharmaceuticals into higher-margin beauty categories. According to the report, the Indian cosmetics manufacturing sector has attracted growing investment from domestic and multinational players alike, driven by rising domestic demand and export-ready infrastructure.
Akums’ expansion positions it to serve both domestic Indian beauty brands and international clients seeking cost-competitive, quality-assured manufacturing with Halal and EU-aligned capabilities. The acquisition adds colour cosmetics to its existing portfolio of skincare and hair care manufacturing — categories where India’s CDMO market grew at an estimated 12.4% CAGR between 2021 and 2025, per industry data cited in related Economic Times coverage.
Supply chain implications
For global supply chain professionals, the transaction signals heightened capacity consolidation in India’s regulated beauty manufacturing segment. With facilities in Roorkee (Uttarakhand) and Noida (Uttar Pradesh), Akums now operates across two major industrial corridors serving northern and western India — regions that account for over 68% of India’s organised cosmetics manufacturing output, according to the Federation of Indian Chambers of Commerce & Industry (FICCI) 2025 Industry Report.
The inclusion of Halal-certified infrastructure strengthens India’s competitiveness in export markets where certification is mandatory — notably Saudi Arabia, UAE, Malaysia, and Indonesia. Meanwhile, European-standard equipment supports compliance with EU Cosmetics Regulation (EC No 1223/2009), reducing time-to-market for brands targeting Europe. As one supply chain consultant noted in a separate Global Cosmetics News briefing, “Having dual-compliant facilities in one transaction reduces vendor onboarding cycles by up to 40% for multiregional beauty brands.”
Broader industry alignment
Akums’ move follows several parallel strategic expansions in the global beauty supply chain. Symrise recently announced its acquisition of Floral Concept to strengthen premium natural fragrance ingredients; Galderma raised its 2026 outlook after strong first-half sales growth; and Reckitt agreed to sell its Russian hygiene business to Arnest — all reported in the same Week 30, July 2026 issue of Global Cosmetics News. These developments underscore intensified capital reallocation toward vertically integrated, geographically diversified, and regulation-ready manufacturing platforms.
The acquisition also aligns with India’s Production Linked Incentive (PLI) Scheme for textiles and personal care, which offers financial incentives to manufacturers meeting export and value-add thresholds — a policy framework expected to drive ₹1,200 crore in new private investment in cosmetics manufacturing by FY2027.
Source: globalcosmeticsnews.com
Compiled from international media by the SCI.AI editorial team.
