L’Oréal to Invest $380 Million in Hyderabad AI Beauty Tech Hub

French cosmetics company said on Wednesday it will set up a beauty technology hub in Hyderabad with an initial investment of more than ₹3,500 crore (about $383 million), marking one of the company’s largest commitments in India.

The partnership was signed by L’Oréal chief executive Nicolas Hieronimus and the Telangana government on the sidelines of the World Economic Forum meeting in Davos.

The Hyderabad facility will serve as a global hub for AI-driven beauty innovation, accelerating the development and deployment of advanced beauty technologies. L’Oréal said the center is expected to create about 2,000 technology jobs by 2030.

The announcement comes as economic ties between India and France continue to deepen. Bilateral trade has more than doubled over the past decade, reaching $15.11 billion in 2023–24, up from $6.4 billion in 2009–10.

The investment adds to a series of recent commercial announcements that have reinforced the economic dimension of India–France relations.

Prime Minister Narendra Modi and French President Emmanuel Macron have pushed to strengthen strategic and economic cooperation, including efforts to modernize the bilateral tax framework.

India and France have been revising their 1992 tax treaty to align with global transparency norms, including proposals to reduce dividend taxes on Indian subsidiaries while allowing India greater rights to tax capital gains from French investors.

France is India’s 11th-largest source of foreign direct investment, with cumulative inflows of $10.94 billion between April 2000 and March 2024, accounting for about 1.6% of total FDI, according to India’s Department for Promotion of Industry and Internal Trade.

The largest shares of French equity investment have gone into services, cement and gypsum products, air transport, miscellaneous industries, and oil and gas, together accounting for nearly half of total inflows over the period.