Beauty ecommerce giant Nykaa has announced the appointment of advertising industry veteran Santosh Desai as an independent director on its board, effective from July 15, with a three-year term.
Background of Santosh Desai
Desai currently serves as the MD and CEO of Futurebrands India and previously held the position of CEO at Future Brands Ltd for nearly 17 years. With over two decades of experience in the advertising industry, he has also served as the president of advertising agency McCann.
Nykaa’s Perspective
Nykaa founder and CEO Falguni Nayar expressed confidence in Desai’s appointment, emphasizing his expertise in understanding the relationship between culture and brands. Nayar believes Desai’s strategic guidance will contribute to Nykaa’s brand equity and long-term global success.
Board Composition
Desai’s appointment adds to Nykaa’s board, which now comprises nine directors. Other independent directors include Milind Sarwate, Anita Ramachandran, Seshashayee Sridhara, and Pradeep Prameshwaram.
Recent Financial Performance
Desai’s appointment follows Nykaa’s financial report for Q4 FY24, where the company’s net profit surged 1.2X YoY to INR 9.07 Cr. However, it experienced a 48% decline on a QoQ basis. Operating revenue grew 28% YoY to INR 1,667.9 Cr but decreased by 6% sequentially.
Strategic Moves
Nykaa is eyeing a 10% YoY growth in its omnichannel beauty platform Nysaa focused on the GCC region. Additionally, the company is streamlining its operations by merging the western wear and accessories business of Nykaa Fashion with its parent company FSN E-Commerce Ventures. It is also integrating its content delivery arm, Little Black Book (LBB), with Nykaa Fashion.
Market Response
Nykaa’s shares closed 0.8% lower at INR 166.80 on the BSE following the announcement.
