The 100 million rupee manufacturing plant will produce cosmetics that suit the Asian skin tones, Modi group chairman Umesh Modi told reporters.
Customers in Asia are not comfortable with cosmetics and toiletries manufactured for western markets as the type of weather and skin tones do not match the products, Modi said.
The factory in Sri Lanka has already done experiments and is in the process of manufacturing Revlon products to suit the weather patterns and the Asian skin color, he added.
The Modi plant will be able to under cut imported cosmetics and toiletries which are classified as luxury items and heavily taxed.
With the plant in Sri Lanka importing only raw material and packaging it will be able to produce cosmetics to international standards at a lower price than imports, Modi said.
The plant will produce a range of cosmetics and toiletries with the Revlon and Street Wear brands being launched Tuesday.The products are aimed at the upper and mid market segments.
"We see a huge potential in the market and we plan to introduce to Sri Lanka all the products that have been launched in India," Deepak Bhandari, marketing director, Modi Group said.
Sri Lanka's cosmetics and toiletries market grew by 11 percent last year to 150 million dollars.
Color cosmetics such as eye shadow, lipstick and nail enamel have grown 28 percent in 2007.
Modi Revlon, a subsidiary of the Modi group, plans to recruit nearly 500 employees to its cosmetics plant which is situated in the capital.
The group plans to set up its own outlets while supplying local cosmetics sales outlets with the Revlon and Street Wear range.