Skincare is among the fastest growing sectors in the Indian economy, with data suggesting that India’s skincare market could touch Rs 20,000 crore by 2025. The pandemic has only accelerated the average Indian’s concern for health and well-being, with more and more people paying greater attention to what they apply on their bodies.

Few entrepreneurs understand India’s increasing interest in skincare as well as Ghazal Alagh, the co-founder and chief innovation officer at Honasa Consumer. Over the last two years, Ghazal has been involved in giving India’s skincare products a makeover, by introducing The Derma Co. whose “active ingredients” provide consumers with “healthy and filter free” skin.

The Telegraph Online caught up with Ghazal to dig deep into the vision and products of The Derma Co., get her views on investment, learn about her experience at Shark Tank India and more.

Edited excerpts from the conversation follow.

Makeup can make acne worse

When and how did you start The Derma Co.? What is the vision at the heart of how you approach skincare at The Derma Co.?

Ghazal Alagh: A couple of years ago I had a major bout of acne and I became extremely conscious of my face because of it. I used to hide it with makeup without realising that I was making it worse. My acne deteriorated and I had to visit a dermatologist. It was my dermat who told me that I made my acne worse by hiding it behind makeup. In fact, my dermat also introduced me to the world of active ingredients and how they benefit the skin when used correctly in the right concentration. This got me very intrigued and I started researching active ingredients. I soon discovered that these ingredients actually sell under cosmetic licence. I thought that if I was suffering from acne, there would be many more people facing similar issues with their skin, which could be solved through active ingredients. This led to the launch of The Derma Co.

Consumers know more and are ready to experiment

What have been the most popular products made by The Derma Co. so far? Do you have a personal favourite?

We have a portfolio of over 40 plus products at The Derma Co. but some of the top selling would be the 10% niacinamide serum for acne marks, the 2% salicylic acid serum for active acne, the 2% kojic acid cream and serum, the 10% AHA and 2% BHA peeling solutions. All of these are my favourites because they have helped me in my journey of overcoming various skin concerns.

Any new products under development right now?

The Derma Co. is a solutions-driven brand. This means that we’re constantly learning from our consumers on their evolving skin concerns and aggressively working on our R&D to innovate products that solve their concerns.

Tell us about the consumers who are most interested in The Derma Co. What sort of customer profile are we looking at and is the demand mostly from India’s tier-1 cities?

Residing in India’s tier-1 or tier-2 cities, digitally savvy, aware about skin concerns and experimental with skin care would be an ideal description of our consumer. Our consumers are based across all the metro cities as well as the other tier-1 and tier-2 markets. At the same time, it’s important to note that consumers are evolving fast and they’re more aware than ever with every piece of information available on their fingertips. This is what leads them to know more than before and makes them ready to experiment.

Ghazal feels that consumers of skincare products are becoming more experimental with more information available at their fingertips than ever before TT archives

I invest in people and not products

As an investor, do you have certain thumb rules or a set of first principles that guide your investment decisions? Or does it keep evolving on a case-by-case basis?

I invest in people and not products. I prefer working with people who’re passionate and have a zeal to achieve. That’s my thumb rule. The others differ on a case-to-case basis.

Ghazal was one of the seven “Sharks” on the first season of Shark Tank India TT archives

What was the best part and the worst part of being on Shark Tank India?

The worst part was that it was short. I would’ve loved being a part of more episodes. I quite liked my experience overall.

Apart from your business interests, you are also an artist whose works have been exhibited in India and overseas. How would you characterise your artistic style?
My art is free-flowing and I usually use just my hands to paint. When I start a painting, I don’t even know how it will look at the end. I just go with the flow.

If you believe in something, go for it

What do you do to zone out? What are your hobbies and passions?

I love reading and spending time with my family. I also love to travel, so I might be holidaying somewhere when looking to zone out.

Atomic Habits is one of Ghazal’s two most favourite books Amazon

Any book recommendations for our readers?

My favourite books are The Obstacle is The Way (by Ryan Holiday) and Atomic Habits by James Clear. I re-read a lot of books and these two have become my biggest favourites. In fact, I’ve recommended these books to friends and colleagues, and they have found value in them, too. I’d recommend everyone to read both these books at least once.

Finally, any message to young women in India who are wondering whether to take the entrepreneurial plunge or not?
If you believe in something, go for it. Don’t get bogged down by comments of other people.