New Delhi, May 9: Alcome Perfumes & Cosmetics plans to set up a Rs 100-crore greenfield plant at the Noida special economic zone.

“We want to make perfume as a product of necessity rather than a product of luxury,” said Hansraj Manghani, managing director of the firm. He said perfumes would be available in the price range of Rs 125 to Rs 495.

The domestic perfumes market is estimated at Rs 300 crore and is growing at 125 per cent annually. It is estimated to grow at a rate of 200 per cent in the coming years with fast changing consumer habits, industry officials said.

Geneva-based International Fragrance Association has estimated that the global perfume market is about $40 billion out of which the mass market has a 70 per cent share.

Manghani said the company was expecting revenues amounting to Rs 150 crore in the first year and was targeting a Rs 500-crore turnover in the next three years from the Indian market.

The greenfield plant would have a production capacity of 400,000 units per day.

Currently the company has two production facilities at Bhiwandi and Noida, which cater to the export market.

With growing demand for fragrance, the company plans to change its strategy by utilising about 50 per cent of production capacity to cater to the domestic market. The fragrance would be imported from France and bottled in India.

The company is planning a multiple marketing and distribution strategy to foray into a market with huge potential, with the middle class growing rapidly and disposable incomes increasing.

While the company will be selling Alcome perfumes such as Lorane, Concept and the Eco Collection through the direct selling mode, it plans to sell other brands such as Momentz and Europa through retail chains.