For this, the Delhi-based company has spun off a new company called Lotus Innovations which will import perfumes and colour cosmetics and obtain exclusive marketing rights to distribute them in India. The company has made an initial investment of Rs 25 lakh in the company.

The first deal was signed last month with a French company-Paris Bleau Perfumes-whereby Lotus acquired the rights to market six of its premium perfume brands such as Red Pearl, Zandarela, Dorien, Sawsan, Malena and Augstine in the country. The company has already imported the first shipment of about 1,500 units (and worth Rs 18 lakh) of each brand into the country.

Priced between Rs 1,200 and Rs 2,400, these perfumes are targeted at the upper end of the market. For distribution, Lotus Innovations is relying on its existing network of Lotus Herbal, which anyway caters to the premium end of the market.

Besides perfumes, Lotus Innovations also plans to get into the colour cosmetics market. It is currently in talks with two to three US-based colour cosmetic companies-including Kiss Cosmetics-to obtain the marketing rights of their products.

According to Passi, the deal with one of the companies is likely to be finalised by the end of this month.

As for the future course of the new company, Lotus Herbals chairman-cum- managing director Kamal Passi said that it will study the market for about three months and then develop a marketing and advertising strategy for the specific brands. ``For the first three months, we'll study the acceptance of the products as to their quality and price.''