Houston-based Farouk Systems Inc. has established a subsidiary in Israel, and will invest $2 million in penetrating the professional hair care market in its first year of operations. Farouk Systems chairman Farouk Shami, a Palestinian businessman, owns the company, founded in 1986. Avi Sagui has been appointed general manager of the Israeli subsidiary.
Farouk Systems, active in 63 countries, develops, manufactures, and markets hair care and spa products. It says it controls 30% of the US hair care market, and has $800 million in turnover. The company aims at achieving a 30% share of the professional Israeli hair care market within its first three years of business. Its first product line to be launched will be Biosilk, based on natural silk.
Former Intercosma Ltd. (TASE:INCS) manager Ran Yanay, an advisor to Farouk Systems in Israel, said, “Israel’s professional hair care market is a strategic target for the company. The market turnover is $40-50 million a year, with a potential growth rate of 10%.”
Three large companies currently dominate Israel’s hair care market: Wella, L’Oreal, and Indola, with 60% of the market. Over 20 firms control the other 40%.
Published by Globes [online], Israel business news - www.globes.co.il - on July 7, 2005