Vedic Cosmeceuticals eyes growth and expansion after Rs 25 Cr fundraise
In conversation with YourStory’s Daily Dispatch powered by HSBC, Mohit Goel, Founder, Vedic Cosmeceuticals, talks about the company’s journey as a manufacturer of high-quality personal care products, and discusses ambitious plans of growth and expansion for the future.
Founded in 2004, Vedic Cosmeceuticals, a full-service private-label manufacturer of high-quality personal care products, offers a wide range of high quality skincare products. In December 2021, the Noida-based company raised Rs 25 crore in a Series A round of funding from Sixth Sense Ventures.
Speaking about the fundraise, Mohit Goel, Founder, says Vedic Cosmeceuticals has always been in the business of skincare and aims to use the funds to “primarily enhance manufacturing capabilities, better efficiencies, and look at other acquisitions in the same space”.
Mohit says the company is associated with one of the top D2C brands in India.
“We have been working with four or five big brands for the past seven to eight years,” he says, adding that going forward, the company’s primary focus will be on research and development, and getting the right manpower and machinery.
However, the founder is clear that the manufacturer does not want to launch its own labels.
“We have been in the business of manufacturing for the past 18-19 years. We’ve mastered the art of turning around quickly, giving clean beauty products, and that’s where we want to be,” Mohit says.
Mohit Goel, Founder, Vedic Cosmeceuticals, with Sandhya Sakhuja, Director Vedic Cosmeceuticals
Focus on R&D
In terms of categories, Mohit says Vedic Cosmeceuticals is looking at colour cosmetics and perfumery. The company also plans to launch a new segment, Vedic Labs, for the purpose of full-fledged research and development work for products and ingredients.
“We believe in presenting newer concepts. We want to continue studies on newer ingredients,” he says, adding that the idea is to understand what the client needs and then try and deliver the right products.
On how Vedic Cosmeceuticals differs from a regular FMCG contract manufacturer, he says: “While we may be doing two lakh units a day, it will probably be spread over 20 different products where we have to go for changeovers in between. This is a tedious process but over the years we’ve geared up to be able to cater to that sort of a demand.”
Vedic Cosmeceuticals has an ambitious target of 5X growth in the next three to four years and 10X in the next five years.
The company, which is expecting to close FY22 with Rs 60-70 crore revenue, is also likely to head for an IPO “about five to six years down the line”.
Edited by Teja Lele