Marico has signed a licensing agreement with skincare and wellness chain Kaya to create and sell new sub-brand Kaya Youth.

Under the agreement, Marico will launch the new brand and pay royalties to Kaya, reported The Economic Times.

The move is aimed to reduce Marico’s reliance on its haircare and edible oil businesses.

Marico managing director Saugata Gupta told The Economic Times: “While Kaya has high brand salience, distribution is limited to mostly its own clinics.

“Marico’s new range will be at a mass-premium level to make it more accessible and also have a wider distribution.”

“Marico’s new range will be at a mass-premium level to make it more accessible and also have a wider distribution.”

Kaya Clinic was launched by Marico’s founder Harsh Mariwala in 2002. The wellness chain was later expanded to the haircare sector. It currently has more than 100 clinics across India.

Kaya Youth will compete with Hindustan Unilever, Procter & Gamble, L’Oreal, ITC and Vini Cosmetics in the Rs100bn ($1.4bn) domestic skincare market.

Gupta added: “Kaya has a thorough understanding of India’s skin and haircare needs. The idea is to use its innovation and customer insights and develop a more scalable brand.”

Marico has launched several products within the personal care segment, ranging from coconut oil to serum and cream-based hair products.

In March 2017, Marico acquired a 45% stake in Zed Lifestyle Private, which sells a range of products, including oil, wax and beard balm under the Beardo brand. It also supplies products for the scalp, hair, face and skin.