Boticário announces investment of almost 2 BILLION to build a new factory that will generate 800 new direct jobs

Have you ever wondered what makes a beauty company invest billions in infrastructure, even when the economic scenario seems unfavorable? The answer may lie in the bold strategies of Grupo Boticário, which not only bets big, but also redefines the future of the cosmetics market in Brazil.

This Thursday (08), the Boticário Group made an announcement that promises to move the beauty sector and generate significant impacts on the national market. The company revealed plans to invest around R $ 1,8 billion in the construction of a new factory in Pouso Alegre, in the south of Minas Gerais, marking the beginning of a new era for the brand.

This will be the group's fourth industrial complex, which already has units in Camaçari (Bahia), São José dos Pinhais (Paraná) and a recent acquisition in São Paulo, with the Truss factory.

Choosing Pouso Alegre, as explained by Artur Grynbaum, vice-president of the board of Grupo Boticário, in an interview with Exame, was strategic. “It will handle future plans, but mainly leave us in a central location and even closer to consumers,” said Grynbaum, highlighting location as a crucial factor in the success of the operation.

The new plant should start operating in 2028, and the expectation is that it increase the group's production capacity by 50%, in addition to generating 800 new direct jobs. With this growth, Grupo Boticário is preparing to meet the growing demand from the domestic market, which continues to be the company's main focus.

However, the foreign market, although still not very representative, is not left out of the company's expansion plans. “With Truss in the portfolio, the group can, in the next 24 months, add 15 to 20 new international partners”, revealed Grynbaum.

Other investments

In addition to the new factory, Grupo Boticário also announced robust investments in other areas. About R $ million 700 will be used to expand the logistics network throughout Brazil, while R $ million 840 will strengthen the São José dos Pinhais unit, with the expansion of production lines capacity by up to 40% and improvements in the administrative structure.

These investments are part of a larger strategy that aims to consolidate Grupo Boticário's position in the Brazilian market, especially after the challenges faced during the COVID-19 pandemic.

Despite an initial impact on sales due to dependence on physical retail, the group managed grow 70% between 2021 and 2023, reaching a total of R$30,8 billion in sales, with 30,5% of this growth recorded in the last year alone.

Keeping an eye on opportunities

Although the Brazilian market is the main target, the group does not lose sight of opportunities abroad. The O Boticário brand is already one of the main Portugal and, with Truss, internationalization plans should gain even more strength.

Truss, known for its professional hair products, is already present in more than 50 countries, and the group is expected to expand its global presence in the coming years.

However, these ambitious plans do not ignore market challenges. Grynbaum recognizes that the current fiscal environment, with uncertainties regarding the reduction in basic interest rates and unstable consumer confidence, presents “not so favorable” headwinds.

Still, the executive believes that the investment is essential to ensure long-term sustainability and growth. “We’ve been here for 47 years and we want to be here for at least another 100 years,” she said.

To finance these new projects, Grupo Boticário intends to use a combination of resources, including own capital and market alternatives, demonstrating a cautious and strategic approach in the face of economic adversities.