Cosmetic used in Madras nowadays (5)
I believe the answer is:
henna
'cosmetic' is the definition.
(I've seen this before)
'used in madras nowadays' is the wordplay.
'used in' means to look at the middle letters (the letters used on the inside of the word).
'madras nowadays' becomes 'chennai' (Chennai in India was previously called Madras).
The central letters of 'chennai' are 'HENNA'.
(Other definitions for henna that I've seen before include "Red-brown plant dye" , "Type of dye" , "(Shrub producing) reddish dyestuff" , "Hair/skin dye" , "Beauty aid" .)