Abstract: Pigments are used to impart color in finished products. The performances of pigments can be improved by coating with suitable materials rendering suitable properties. For cosmetic applications the pigments are usually surface treated with hydrophobizing material rendering the pigments hydrophobic. This invention relates to the use of polyhydroxy fatty acid preferably dihydroxysteadc acid (DHSA) and/or metallic salts of dihydroxystearic acid (Metallic DHSA) to coat pigments in particular pigments to be used in color cosmetic formulations. DHSA is produced either from crude or refined oleic acid or via chemical transformation or biotransformation of suitable substrates, used either in crude or refined form and the metallic salts are produced either using crude or refined DHSA. DHSA and Metallic DHSA are used to coat pigments and when these coated pigments are incorporated into finished products formulations such as cosmetic formulations, enhanced performances are observed.