FMCG firms seek separate law for beauty products

Fast-moving consumer goods (FMCG) companies are asking for a separate law to govern beauty and personal care (BPC) products, saying current regulations under the Drugs and Cosmetics Act 1940 impede growth. At present, the making of soaps, skin care, hair care, oral care and cosmetic products, much like drugs, is regulated under a system of inspection and licensing by state licensing authorities.

Beauty majors such as Hindustan Unilever (HUL), L’Oreal, Procter & Gamble, Colgate-Palmolive, ITC and Marico, under the Indian Beauty and Hygiene Association (IBHA), an apex body, have pointed to high compliance levels, the need for approval for small changes and the focus on pre-market licensing versus post-market notification and surveillance for the need to separate cosmetics and drugs regulation.

ALSO READAmazon eyes spinoff and local listing Valuation may get impacted due to ongoing CCI probe

At a high-level round-table last week, convened by The Dialogue, a public policy think-tank, beauty firms along with industry bodies and stakeholders from the legal fraternity and civil society discussed regulatory approaches for the cosmetics sector.

While the government did set up a committee a few years ago to examine the eight-decade-old Drugs and Cosmetics Act, a draft Bill, the New Drugs, Medical Devices and Cosmetics Bill, 2022, was introduced. The amended Bill is yet to be passed in Parliament. But beauty firms have argued that the new Bill does not address its need for a separate regulation. Beauty firms have also pointed to the food sector where the Food Safety and Standards Act, 2006, replaced existing food laws that focused on prevention of adulteration to regulation based on safety and science-based standards.

“The cosmetics sector provides essential daily-use products at affordable prices. Considering the industry’s growing importance, it is prudent to consider a dedicated regulatory framework that does not govern drugs and cosmetics together,” Dev Bajpai, advisor and former whole-time director and chief legal officer at HUL, said.

ALSO READPromoter group to hike stake to 33.47% in SpiceJet 

Amit Bhasin, chief legal officer at Marico, has pointed to a prolonged pre-market approval process and the challenges it poses to companies to improve scale and compete effectively in the marketplace.

“A modernised, industry-specific regulatory framework would not only accelerate product innovation and market entry but also create market opportunities for emerging businesses,”

 » Read More

Related Articles

Ashish Kacholia’s Latest Stock Pick starts with a 2.53% Stake

Thomas Scott India Ltd (TSIL) Thomas Scott (India) Limited formed in October 2010 to acquire Bang Overseas Limited’s Retail Division under the “Thomas Scott” brand. The demerger, effective April 1, 2011, was finalized on August 5, 2011. The company was listed on NSE and BSE in January 2012. With a current market cap of Rs

Nuvama sees 96% upside in PVR Inox

Chhatrapati Shivaji Maharaj played a key role in reviving nationalism and the brokerage firm Nuvama Institutional Equities believes that the movie Chhava, based on his son’s achievements has revived the spark in Indian cinema. Following the stupendous box office collection for Chhaava, Nuvama expects a 96% upside in PVR Inox’s share price.  It has a target of Rs 1,765 on the

NMDC dividend payout: Check record date and 4 key factors that investors need to watch

NMDC has announced its first interim dividend for FY25. As India’s largest iron ore producer rolls out fresh payouts, its stock performance remains key points of interest. Dividend announcement and record date NMDC has declared an interim dividend of Rs 2.30 per share with a face value of Rs 1. The record date for eligibility

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Stay Connected

0FansLike
0FollowersFollow
0SubscribersSubscribe
- Advertisement -

Latest Articles

Ashish Kacholia’s Latest Stock Pick starts with a 2.53% Stake

Thomas Scott India Ltd (TSIL) Thomas Scott (India) Limited formed in October 2010 to acquire Bang Overseas Limited’s Retail Division under the “Thomas Scott” brand. The demerger, effective April 1, 2011, was finalized on August 5, 2011. The company was listed on NSE and BSE in January 2012. With a current market cap of Rs

Nuvama sees 96% upside in PVR Inox

Chhatrapati Shivaji Maharaj played a key role in reviving nationalism and the brokerage firm Nuvama Institutional Equities believes that the movie Chhava, based on his son’s achievements has revived the spark in Indian cinema. Following the stupendous box office collection for Chhaava, Nuvama expects a 96% upside in PVR Inox’s share price.  It has a target of Rs 1,765 on the

NMDC dividend payout: Check record date and 4 key factors that investors need to watch

NMDC has announced its first interim dividend for FY25. As India’s largest iron ore producer rolls out fresh payouts, its stock performance remains key points of interest. Dividend announcement and record date NMDC has declared an interim dividend of Rs 2.30 per share with a face value of Rs 1. The record date for eligibility

Stock Market Live Updates: Nifty, Sensex set to open higher; Asian markets trade in green

Go to Live UpdatesSensex Nifty Today | Stock Market Live Updates: Indian markets are set to open on a positive note today, taking cues from early trends in GIFT Nifty. Asian stocks also kicked off the day in the green, reflecting optimism from Wall Street’s overnight rally. Major indices across Japan, South Korea, and Australia

How will markets open today? Fed meeting, soaring gold rate and 6 more cues to watch

Markets are gearing up for a positive start today, with early signals from Gift Nifty pointing upwards. Global factors, including Wall Street trends and key economic updates, will set the tone for the day. On March 17, Indian stock markets ended on a strong note, with the Sensex rising 0.46% to 74,169.95 and the Nifty