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| INTERVIEW
WITH ARUN BEWOOR, GROUP COUNTRY MANAGER, IFF |
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Bush Boake Allen India
was acquired by International Flavours and Fragrances (IFF),
the world's largest Flavours and Fragrances Company. Bush Boake
now has access to IFF's technology in terms of creation, development,
application and marketing. Bush Boake is now looking at strengthening
its position, in the flavours and fragrances market. Chennaibest.com
speaks to Arun Bewoor, Group Country Manager, IFF, about
the fragrances industry.
Which industries do you cater to? 
The flavours, fragrances and aroma chemicals industry worldwide is
worth about $ 15 billion.
Fragrances are substances used in products which are used on the body
- soaps, detergents, toiletries, cosmetics, cleansers and household
products. Here again, fragrances play a key part in determining the
consumer's preference and choice. Again, when you use a soap or cologne,
the decision is based first on the smell.
So the technology in making flavours and fragrances is controlled
by seven to eight major worldwide companies, who hold about 70% of
the market share. Most of these companies are represented in India.
The market is very competitive. There is a tremendous scope for development.
But one has to be extra smart in the area of creation, applying that
flavour or fragrance to the end product, and showing it to the customer
to make a choice.
Is it possible to put a figure to the local
market?
The fragrance market is worth about Rs 500 crore in India.
How much of the market is constituted by the
organised sector and what portion is unorganised?
In flavours and fragrances, the top 10 houses in India control about
70% of the market and the balance would be occupied by a large number
of small manufacturers. It is scattered, and some players in the small
sector cater to a niche market. The advantage of dealing with big
houses is the access to technology, access to new material and processes.
This is the advantage we give to the customers.
Where do you source the raw material? How much
is imported?
 Raw
material is sourced from all over the world and are also locally sourced.
The proportion will be very close to 50-50 or 40-60. No country is
self-sufficient in all the raw materials and so all the countries
export and import. For example, India exports menthol, sandalwood
oil etc, but it imports orange oil, lanoline etc. It depends on the
climate, history, expertise etc.
What has been the growth rate of this industry?
And prospects for growth?
For the fragrance market it is between 10 to 12 %. There is
an increased use of toiletries, there is awareness, people want to
look good, smell good. Houses are better and cleaner, so the scope
is definitely there. One has to be smart to understand the trends
and take advantage of the trends. You cannot assume that the market
is growing and so will we.
What proportion of production is allotted for
export?
The domestic market is a major opportunity, so most Indian companies
cater to the local market. Most multi-nationals have their units all
over the world, so it does not make sense to export. But the domestic
market provides a large opportunity.
 Has
the concept of branding taken off in this industry?
Brand is recognised by the people and the resources behind it. Remember,
we are not selling to millions of consumers. The decision is made
across the table. Brand here has a different connotation. Here it
means - What does a particular brand represent in terms of technology,
service, the people behind it, financial strength, application marketing
etc. But brand per se does not work. We sell only to industrial consumers
like the biscuit manufacturers, liquor manufacturers etc. The consumer
will not even know who's behind the flavour or fragrance.
Could you explain to us the process that goes
into creating new fragrance?
To create a trained flavourist or perfumer takes about 6 to 7 years...
may be longer. You understand and train a person's nose, thereby he/she
can differentiate a large number of fragrances. He understands the
chemicals and processes that make up the flavour and fragrance profile
and then he is trained to develop it. Basically it means bringing
a large number of odiferous chemicals in proper proportions to give
a flavour or fragrance of the desired characteristic or profile. A
fragrance will contain between 100 to 300 items.
How much of R & D for flavours and fragrances
draws input from traditional perfumes and aromas?
Yes, we do use a number of them, like sandalwood, vettiver (an Indian
root, widely used as a cooling agent), geranium etc. Absolutely.
What factors play a decisive role in choosing
what fragrances are brought into the market?
 Depends
on the brief given by the customer. We have to look at what is it
going to be used for; a soap, detergent, perfume, after-shave, cologne
or hair-oil, what is the base material? What is the odour of that
material? We have a bank of trained perfumers, who do this for us.
Then again it depends on whether the customer is creating a totally
new brand category, is he competing against a leader, or is he a leader
trying to increase his market share, what is the brand about? Do you
use a soap because of the smell, the fatty matter, lather, and advertisement
or because somebody is endorsing it? How do you make a fragrance that
suits the brand character and profile? A rose is typically delicate,
gentle and soothing. Lime is associated with power, masculinity and
energy. So you have to match the profile of the product with the profile
of the fragrance.
What are the ancillary industries involved in
this industry?
We use about 1,000 raw material for our flavours and fragrances, packaging,
and a little bit of engineering. It is not a particularly capital
intensive industry.
How crucial is packaging in this industry?
In India it is important for the end product, as we do not
have much of air-conditioning and cold storage. But in our industry,
we give a certain shelf life and expect the user to use it within
the given period.
Are there any specific skill sets required for
this industry? Where do you source your skilled manpower?
We recruit graduates and post graduates in Organic Chemistry for the
fragrances industry.
How is your manufacturing facility dealing with
the environmental hazards of having the plant so close to residential
localities?
We are one of a very few companies in Chennai who have got
ISO 14001 certification, which means we follow and exceed environmental
norms. We have also got the ISO 9001 and 9002 certification.
We are trying to get the ISO 18000 this year. We ensure that
no liquid is wasted out. We treat the water and use it for gardening.
We check for air pollution and waste is either incinerated or destroyed
before being circulated. No material goes out of the plant, which
may be too dangerous for human consumption.
What about safety standards adopted to handle
inflammable chemicals?
We have very high safety standards. We have got the British Safety
Council award for three years in a row now. We are now training
a number of organisations on safety standards, pollution standards,
health and hygiene. We are considered a model in the South as far
as safety and environmental hygiene is concerned.
Also
Read an Interview with Arun Bewoor on the Flavour Industry
- Anuradha Sriraman
Photographs : Leslee Lazar |
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