L’Oréal picks Hyderabad for one of its biggest GCCs

L'Oréal, the world's largest cosmetics maker, is establishing one of its biggest Global Capability Centres (GCCs) in Hyderabad, as per reports. This move intensifies competition among consumer multinationals to place technology and operations hubs in India.

The new centre, separate from L'Oréal's existing India research facilities in Mumbai and Bengaluru, will drive global technology, innovation, and research for the French group. L'Oréal has begun scouting for senior leadership, including people from its Paris headquarters. The project was a top agenda item during a visit by L'Oréal's global board last month, led by CEO Nicolas Hieronimus.

L'Oréal did not respond to an email seeking comment. The company, which owns Garnier and Maybelline, already runs three large research hubs in France and regional centres in the US, Japan, China, Brazil, South Africa, and India.

The latest expansion underscores the company's growing focus on India. In July, L'Oréal appointed Jacques Lebel as India country manager, succeeding Aseem Kaushik. Lebel, who previously held senior leadership roles at L'Oréal and other consumer companies like Procter & Gamble and AB InBev, reflects India's rising importance within the group.

L'Oréal India's growth slowed to 5% in FY25, down from 14% the previous year and 30% in the two years prior, amid intensifying competition from youth-focused direct-to-consumer brands.

The firm has about an 8% share of India's face-care market, dominated by Hindustan Unilever with over 40% share. India currently accounts for just over 1% of L'Oréal annual sales (more than ₹41 billion), making it the firm's 15th biggest market worldwide. The company expects the country to rank among its top 10 markets within the next few years, with annual revenue of ₹1 billion.

GCCs are offshore hubs that run multinationals' critical technology, analytics, operations, finance, supply-chain, and R&D work. For most companies, GCCs offer tighter control compared to outsourcing, along with access to high-quality talent at scale. India has become the world's preferred location for GCCs due to engineering and digital talent, cost advantages, and ability to scale teams rapidly.