Bonjour Les Amis! L’Oréal, Pernod Ricard top executives in India this week amid slowdown
Top leaders from Pernod Ricard and L’Oréal are visiting India this week to evaluate their operations and consider restructuring amid a slowdown.
Pernod Ricard:
• The global executive committee—including Alexandre Ricard (Chairman), CFO Helene de Tissot, Maria Pia De Caro (Head of Integrated Ops), and HR head Cedric Ramat—will spend two days in India.
• They intend to announce a realignment strategy for the India unit, which could include job cuts and cost-saving measures.
• India contributes about 13% of Pernod’s global sales.
• Sales in India rose by ~6% in the year ending June, but both revenue and profit growth fell short of their typical double-digit levels.
• The business is being scrutinized for “flab”—overlapping roles and scaling too fast.
• The company has already laid off ~40 employees for non-performance/compliance, and may shift ~100 employees to Tilaknagar Distilleries (which acquired part of its business).
• Globally, Pernod is simplifying its structure via its “Tomorrow 2” project—grouping brands into two divisions to become more agile.
• It is investing nearly ₹1,800 crore to build a large Asian distillery in Nagpur, but raised excise duties on made-in-India foreign liquor (by 50%) could hurt margins.
L’Oréal:
• Its growth in India slowed sharply to 5% in FY25, down from ~14% the previous year.
• Competition from youth-oriented D2C brands is pressuring L’Oréal’s performance.
• In July 2025, L’Oréal appointed Jacques Lebel as India country manager (replacing Aseem Kaushik, who becomes India chairman).
• The India operations, which earlier reported directly to headquarters, will now be more directly managed by the MNC’s leadership.
• The visit also sees Nicolas Hieronimus (L’Oréal CEO) and board members—such as Eben’s former Chairman Paul Bulcke and Sodexo CEO Sophie Bellon—meeting in Mumbai to review strategy for India.
The simultaneous visits underscore India’s strategic importance for both companies, especially as global growth slows and India remains one of the few high-growth markets.
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