Brazilian Natura likely to open plant in Peru

Brazilian direct sales cosmetics player Natura evaluates several locations, including Peru, to satrt the construction of its new production plant.

Currently, the company has a production plant in Cajamar, 40 minutes from Sao Paulo (Brazil) and a soap production plant in Belen du Para, also in Brazil.

According to Natura Peru chief executive officer, Jose Ramon Hernandez, cosmetics and skin care demand in the region has increased substantially in recent years, and that is why the company has begun to evaluate the possibility of building a new production plant.

"Eventually, the project could be located in Peru because of the proximity of inputs and its strategic position within Latin America enabling the company to access the largest consumer markets of this sector", he told Andina news agency.

In addition, Peru has a high level of legal security, economic strength and a favorable environment for investment in the long and medium term, making it an attractive market.

"A location study to find the most suitable area to build the new plant is being carried out, and it is expected that the location will be defined in the medium term, between three to five years", he said.

However, he commented that Natura investments are located near the north of Latin America since the largest consumer markets such as Mexico, Venezuela and Colombia, are located.

As for the local operation, Hernandez said that the company is positioning in key markets such as provinces Trujillo (La Libertad), Lima (Lambayeque), Arequipa and Cusco, where it comes from a good percentage of sales of the company.

"In addition, as part of sales strategy we are entering the east of the country, in cities like Tarapoto (San Martin) and Iquitos (Loreto)", elaborated.

The company owns a portfolio of 600 products with which this year expects an increase in sales of 40 percent, driven mainly by products for the treatment of the face, perfume and makeup.

Publication: Andina - English Newswire
Provider: Andina
Date: June 18, 2008