Swedish beauty brand Oriflame has announced the sale of its India manufacturing operations to Akums subsidiary for ₹56 crore, marking a significant strategic shift in the company's operational structure. The acquisition, approved by the board on 23 July 2026, includes Oriflame India's manufacturing facilities located in Roorkee, Uttarakhand, and Noida, Uttar Pradesh, along with a leased warehouse in Noida. The transaction is expected to be completed by 31 August 2026, subject to customary closing conditions and regulatory approvals. As per latest reports, the transaction involves transferring manufacturing operations to Pure and Cure Healthcare Private Limited, a wholly-owned subsidiary of Akums Drugs and Pharmaceuticals Limited, one of India's leading contract development and manufacturing organisations (CDMOs). The acquisition is being made purely on a cash consideration basis.
The acquired facilities manufacture products across skincare, wellness, hair care and colour cosmetics, with the portfolio including creams, lotions, face wash, serums, shampoos, conditioners, lipsticks, foundations, primers, mascara and eyeliners. According to Akums, the plants are equipped with European manufacturing equipment and are Halal-certified, enabling exports to both domestic and international markets. The facilities bring a wide range of manufacturing capabilities across skincare, including creams, lotions, scrubs, face wash and serums; hair care with shampoos and conditioners; and colour cosmetics with lipsticks, foundations, primers, mascara and eyeliners. Both plants are well designed, equipped with several European-make machines across processing, filling and labelling, and offer capacities ranging from small to large batch sizes. The acquisition represents a significant expansion of Akums' existing skincare and wellness manufacturing operations while adding colour cosmetics to its contract development and manufacturing (CDMO) portfolio.
As part of the agreement, Oriflame and Akums will enter into a long-term strategic manufacturing and supply partnership. Akums will continue to manufacture Oriflame products, ensuring continuity of supply and maintaining the high standards of quality expected by Oriflame Beauty Entrepreneurs and customers. According to Oriflame CEO and President Anna Malmhake, "This agreement represents an important strategic step for Oriflame in India. By partnering with Akums, a highly respected manufacturing company with strong capabilities and a proven track record, we are securing a long-term manufacturing partnership that will continue to support the high-quality products our beauty entrepreneurs and customers expect." Following the transaction, Oriflame and Akums will enter into a long-term manufacturing and supply partnership under which Akums will continue producing Oriflame products for the Indian market. The arrangement is intended to ensure uninterrupted product availability while maintaining the quality standards associated with the Swedish beauty and wellbeing brand.
According to Business Standard, Oriflame's commercial operations, Beauty Entrepreneur network, trademarks and customer-facing activities in India are not part of the transaction and will continue to be operated by Oriflame India Private Limited. Employees currently working at the manufacturing sites will be offered continued employment with the new owner on the same terms and conditions. The company emphasized that it is business as usual for its sellers and customers, as its commercial operations, products and services remain unchanged. Akums clarified that the acquisition is limited to Oriflame India's manufacturing business, with all marketing, sales and trademark rights related to Oriflame products in India remaining with Oriflame India. Edyta Kurek, senior vice-president and general manager of Oriflame India, emphasized that the partnership reflects their philosophy of building long-term, sustainable partnerships that uphold the highest standards of quality, bringing together Oriflame's global product expertise and uncompromising quality standards with Akums' manufacturing excellence.
The move positions Akums to capture a larger share of India's rapidly expanding cosmetics and personal care industry. The India cosmetics market, estimated at $20 billion, is projected to nearly double in the next decade. With this acquisition, Akums will expand its existing footprint in skincare cosmetics and wellness products manufacturing while marking its foray into colour cosmetics manufacturing. Sanjeev Jain, Managing Director of Akums Drugs and Pharmaceuticals Ltd., noted that this acquisition is a significant step in Akums' strategy to diversify beyond pharmaceuticals into high-growth adjacent categories, with cosmetics, colour cosmetics in particular, representing one of the fastest-growing consumption stories in India today. "Acquiring these two well-established manufacturing facilities gives us immediate, high-quality capacity and capability, and strengthens our ability to serve both Indian and global brands," Jain stated. The transaction enables Oriflame to maintain a long-term manufacturing presence in India while adopting a more asset-light operating model, with the company remaining fully committed to its long-term growth ambitions in the country.
According to Business Standard, Oriflame stated that India remains a strategically important market for the company, having operated in the country for more than 30 years. The company will continue to grow its fast-growing social-selling business, serving consumers through its network of Beauty Entrepreneurs across the country. Akums noted that the facilities' proven expertise and infrastructure align closely with their quality and scale ambitions, with their focus remaining on building world-class manufacturing capacity that can cater to the growing demand for skincare and colour cosmetics, both domestically and for export markets. For Oriflame, the partnership enables a more asset-light operating model while maintaining a long-term manufacturing presence in one of its key growth markets. In 2025, Oriflame was recognised as a European Climate Leader by the Financial Times and Statista for five consecutive years, reflecting its commitment to sustainable business practices.
