Executive Summary 

One of India’s largest consumer products companies partnered with Redseer Strategy Consultants for a commercial due diligence on two players in the emerging hair growth space in India. Redseer’s exercise discovered shortcomings in both assets, with one lagging behind the competition in terms of customer satisfaction, and the other lacking product scalability. Redseer identified alternate investment options for the client in the same space as well as adjacent spaces, resulting in the client opting for value protection and redirecting their investment strategies.  

About the Client 

A leading Indian FMCG company, part of a prominent conglomerate, specializes in home care, personal care, and hair care products. The client runs extensive domestic operations as well as strong international operations across emerging markets. 

The Strategic Imperative

The client was looking to invest in the steadily growing, large headroom hair growth market, which is seeing positive results in terms of customer satisfaction and stickiness. The hair growth space is also seeing strong M&A activity by major consumer products players.  

Outcomes & Impact 

• Market assessment: Our analysis showed that the hair growth problem was being attacked in multiple ways, such as medicated shampoos, topical solutions, supplements, etc. Different solution types appealed to different customer segments. 
• Synergy with the client: Both of the emerging growth players that were being evaluated struggled with the balance between personalisation and scalability, with one having high customer satisfaction scores, but its solutions did not align with the client’s requirements of scalability, while the other struggled to address consumer-specific challenges  
• Outcome: Redseer recommended other investment options to the client in the same as well as adjacent spaces, resulting in the client opting for value protection and redirecting their investment strategies.  

What This Means for the Industry 

The hair growth industry in India is seeing a lot of M&A activity, but there remains a challenge for players in terms of striking a balance between scalability and personalisation. The industry is likely to shift towards scalable nutraceutical solutions that can be supplied through over-the-counter channels. 

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