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Global industry looks at India as a future hub for<br />

Fragrances and Flavours<br />

Fragrances and Flavours Association of<br />

India (FAFAI) is the national apex body of<br />

the players in the Fragrances & Flavours<br />

segment. The body was formed in 1949 by<br />

a few traders from the segment, with the<br />

key objective to promote the sector.<br />

Today, with 800 members, the body, apart<br />

from manufacturers and dealers from the<br />

Fragrances & Flavours industry, includes<br />

those that are from Aroma Chemicals,<br />

Natural Essential Oils as well as allied<br />

fields. The association regularly conducts<br />

biennial seminars across India, on various<br />

topics that are relevant to the Fragrances<br />

& Flavours and allied industries. The 20th<br />

FAFAI seminar was held in Bangalore<br />

between January 28 and 30, 2011. The<br />

theme of the event was India – The Future<br />

of F&F Industry.<br />

According to Frost & Sullivan India,<br />

globally, the Fragrances & Flavours<br />

segment is estimated to be $17.8 billion<br />

industry of which the top five players<br />

account for 40 per cent of the market. The<br />

five largest companies in the industry are<br />

Givaudan, <strong>International</strong> Flavours &<br />

Fragrances (IFF), Firmenich, Symrise and<br />

Quest <strong>International</strong>. Japanese firm,<br />

Takasago, the sixth largest player, has<br />

revenues close to that of Quest<br />

<strong>International</strong>.<br />

The Indian Fragrances and Flavours<br />

industry has been growing rapidly<br />

following liberalisation. The global<br />

economic slowdown did not have any<br />

impact on the industry; instead, it clocked<br />

a growth rate of 12 -15 per cent. With<br />

globalisation, there have been<br />

improvements in technology, competition<br />

and brand images. The global industry is<br />

looking at India as a future hub for<br />

fragrances and flavours, stated Rohit<br />

Seth, Joint Secretary, FAFAI, in an<br />

interaction over email. Excerpts:<br />

How would you describe the current<br />

food fragrances and flavours industry<br />

scene in India?<br />

The market for the food fragrances and<br />

flavours related products is showing strong<br />

growth. The Indian strength lies in the fact<br />

that the products are available at<br />

competitive prices.<br />

<strong>Market</strong> <strong>News</strong> <strong>Service</strong><br />

Essential Oil and Oleoresins<br />

What are India’s capabilities in this<br />

space? Which are the important<br />

flavours and fragrances that are<br />

distinct to India?<br />

India's capability in this space pertains to<br />

sandal, jasmine and herbal-related<br />

fragrances. For flavours, it is about spicebased<br />

products since India dominates in<br />

production of spices.<br />

What is the total size of this sector and<br />

its growth rate?<br />

The total size of the industry including<br />

menthol, sandalwood oil and other<br />

essential oils is around Rs. 9,000 crore<br />

and the estimated growth rate is<br />

approximately 12 per cent. The key<br />

applications of flavours in the food<br />

processing sector include confectionaries,<br />

dairy, bakery and snacks among others.<br />

Globally what is India’s stand in the<br />

food fragrances and flavours space?<br />

India is a market, which the world is<br />

eyeing, so we expect that India is going to<br />

place itself at a very commanding position<br />

in near future.<br />

Would the country become a hub for<br />

contract manufacture of food<br />

fragrances and flavours?<br />

India has a good potential to become a<br />

hub for manufacturing, especially, for raw<br />

materials used by the industry.<br />

What according to you are the visible<br />

trends in this industry?<br />

Strong growth is visible for the industry in<br />

coming years, going by India‘s inherent<br />

strength in the space of spices and<br />

development of fragrances.<br />

Conventionally, flavours and fragrances<br />

are mainly customised in raw materials,<br />

which lead to higher pricing of endproducts.<br />

The industry is also extremely fragmented<br />

and is expected to consolidate in the<br />

coming years.<br />

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