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Global industry looks at India as a future hub for Fragrances and Flavours
Fragrances and Flavours Association of India (FAFAI) is the national apex body of the players in the Fragrances & Flavours segment. The body was formed in 1949 by a few traders from the segment, with the key objective to promote the sector.



Today, with 800 members, the body, apart from manufacturers and dealers from the Fragrances & Flavours industry, includes those that are from Aroma Chemicals, Natural Essential Oils as well as allied fields.
The association regularly conducts biennial seminars across India, on various topics that are relevant to the Fragrances & Flavours and allied industries.


According to Frost & Sullivan India, globally, the Fragrances & Flavours segment is estimated to be $17.8 billion industry of which the top five players account for 40 per cent of the market. The five largest companies in the industry are Givaudan, International Flavours & Fragrances (IFF), Firmenich, Symrise and Quest International. Japanese firm, Takasago, the sixth largest player, has revenues close to that of QuestInternational.


The Indian Fragrances and Flavours industry has been growing rapidly following liberalisation. The global
economic slowdown did not have any impact on the industry; instead, it clocked a growth rate of 12 -15 per cent. With globalisation, there have been improvements in technology, competition and brand images.


The global industry is looking at India as a future hub for fragrances and flavours, stated Rohit Seth, Joint Secretary, FAFAI, in an interaction over email. Excerpts:

How would you describe the current food fragrances and flavours industryscene in India?

The market for the food fragrances and flavours related products is showing strong growth. The Indian strength lies in the fact that the products are available at competitive prices

What are India’s capabilities in this space? Which are the important flavours and fragrances that are distinct to India?

India's capability in this space pertains to sandal, jasmine and herbal-related fragrances. For flavours, it is about spicebased products since India dominates in production of spices.

What is the total size of this sector and its growth rate?

The total size of the industry including menthol, sandalwood oil and other essential oils is around Rs. 9,000 crore and the estimated growth rate is approximately 12 per cent. The key applications of flavours in the food processing sector include confectionaries, dairy, bakery and snacks among others.

Globally what is India’s stand in the food fragrances and flavours space?

India is a market, which the world is eyeing, so we expect that India is going to place itself at a very commanding position in near future.

Would the country become a hub for contract manufacture of food fragrances and flavours?

India has a good potential to become a hub for manufacturing, especially, for raw materials used by the industry.

What according to you are the visible trends in this industry?

Strong growth is visible for the industry in coming years, going by India‘s inherent strength in the space of spices and development of fragrances. Conventionally, flavours and fragrances are mainly customised in raw materials, which lead to higher pricing of endproducts. The industry is also extremely fragmented and is expected to consolidate in the coming years.
Source: Food & Beverage News-MARCH 2011