Estée Lauder to Acquire Forest Essentials: Expanding Indian Beauty Globally

The Estée Lauder Companies is moving to full ownership of Forest Essentials, a leading Indian luxury Ayurveda brand, in a deal expected to close in the second half of 2026. The US beauty conglomerate has entered into an agreement to acquire the remaining interests in the company, building on a relationship that began with a minority investment in 2008 and increased to 49% in 2020. This acquisition signals a deepening commitment to the Indian market and a bet on the growing global demand for Ayurvedic products.

A Long-Term Partnership Reaches Completion

Founded in 2000 by entrepreneur Mira Kulkarni, Forest Essentials has grown from a tiny operation selling handmade soaps and candles to a brand with nearly 200 freestanding stores across India and projected low double-digit net sales growth. The initial spark came from an order from the Hyatt Regency Delhi, which purchased the soaps for its rooms. Kulkarni will remain at the helm of the brand following the acquisition, with headquarters remaining in Novel Delhi and her son, Samrath Bedi, will continue in his role as executive director. This continuity is a key element of the deal, according to Estée Lauder President and Chief Executive Officer Stéphane de La Faverie, who emphasized the importance of honoring the brand’s DNA.

Preserving Brand Identity While Scaling Operations

De La Faverie told Business Standard that the acquisition will not alter Forest Essentials’ core identity. The brand name, product strategy, and price positioning will remain unchanged. “Our philosophy is always to honour and respect the brand DNA,” he said. Estée Lauder intends to leverage its operational scale to help Forest Essentials reach the next level of growth, particularly in international markets. The company currently operates 14 of its 20 brands in India, spanning skincare, makeup, and fragrance, and draws a parallel between Kulkarni and its own founder, Estée Lauder, recognizing a shared entrepreneurial spirit.

India as a Global Growth Engine

The acquisition is strategically significant for Estée Lauder’s global footprint. Combining Forest Essentials with its existing portfolio will make India the company’s largest emerging market. This move reflects a broader trend of multinational corporations recognizing the potential of the Indian consumer market, driven by a growing middle class and increasing disposable income. The Estée Lauder Companies currently sells products in approximately 150 countries worldwide. Forest Essentials also exports to 120 countries, and has factories in Haridwar and Lodsi in Uttarakhand.

The Appeal of Ayurveda and Natural Cosmetics

Forest Essentials specializes in Ayurvedic preparations, a system of traditional medicine originating in India. The brand’s focus on natural, organic, and cruelty-free cosmetics aligns with growing consumer demand for sustainable and ethical products. The company has a policy of not testing its products on animals. This resonates with a global shift towards wellness and holistic beauty, where consumers are increasingly seeking products that are both effective and environmentally responsible. The global organic personal care market was valued at $22.86 billion in 2023 and is projected to reach $35.84 billion by 2032, according to a report by Fortune Business Insights. Fortune Business Insights

Financial Details and Transaction Timeline

While specific financial terms of the acquisition were not disclosed, Estée Lauder’s previous investments provide some context. The initial 20% stake acquired in 2008 was followed by an increase to 49% in 2020. Forest Essentials reported revenue of US$4 million in 2018, according to Wikipedia, and currently employs 135 people. The transaction is subject to regulatory approvals, a standard procedure for acquisitions of this size, and is expected to close in the second half of 2026. This timeline allows for the necessary due diligence and approvals from relevant authorities in both the US and India.

What’s Next: Regulatory Review and Integration

The immediate next step is securing regulatory approvals from relevant authorities. This process typically involves an assessment of the potential impact on competition within the beauty and personal care market. Following approval, Estée Lauder will begin the process of integrating Forest Essentials into its global operations, while maintaining the brand’s distinct identity and Indian-based operations. Kulkarni expressed confidence that Estée Lauder will be a partner who recognizes the importance of Forest Essentials’ Indian heritage, viewing it as a strength rather than a limitation. The integration will likely focus on leveraging Estée Lauder’s supply chain, distribution network, and marketing expertise to expand Forest Essentials’ reach and accelerate its growth trajectory.

De La Faverie summarized the vision: “We observe Indian beauty as a growing force not only for India but for the world. The plan is to support India for India, and India for the world.”