Honasa Consumer’s The Derma Co hits annual revenue run rate of Rs 500 crore

The Derma Co., a brand under Honasa Consumer Limited, has achieved an annual revenue run rate (ARR) of Rs 500 crore.

The milestone demonstrates the company’s effective brand-building and innovative approach within the skincare industry. The company continues to show robust growth and expansion in the beauty and personal care (BPC) sector.

In addition to The Derma Co., Honasa Consumer owns popular brands like Mamaearth, BBlunt, and Dr. Sheth's Skin and Hair Clinics.

Strategic growth and product innovation

Varun Alagh, Co-Founder, Chairman, and CEO of Honasa Consumer Limited, stated, “The Derma Co.'s remarkable achievement of INR 500 crore annual run rate is a strong testament to our strategic brand-building approach at Honasa Consumer Limited. Our success is an output of in-depth consumer study of the evolving consumer demands and being able to innovate swiftly to deliver differentiated propositions to our consumers.”

The brand’s growth is largely attributed to its focus on active ingredients and customization to suit Indian skin types and conditions.

Competitive edge in the market

The Derma Co. competes with both local and global brands in the active ingredients skincare segment, offering a range of products, including face serums, hydrating sunscreens, sunscreen sticks, and acne patches.

Despite strong competition, the brand has managed to stand out by tailoring its offerings to meet the specific needs of Indian consumers, resulting in the sale of over 1 crore units in the last fiscal year.

Expansion into new segments

Following the success of The Derma Co., Honasa Consumer Limited has further expanded its portfolio with the launch of ‘Staze’, a new colour cosmetics line aimed at capturing the growing demand in this sector.

Varun Alagh elaborated, “Staze is poised to carve its niche with a distinct emphasis on performance and innovation, uniquely positioned to meet and exceed Gen Z consumers' expectations.”

The parent firm has shown significant financial growth with a 265% increase in consolidated net profit, reaching Rs 26 crore for the October-December quarter, up from Rs 7.1 crore a year earlier. Revenue from operations grew by 28% year-on-year to Rs 488 crore.