Our Consistent Growth Is Due To Joint Efforts Of Young Blood & Experienced Minds: Manoj Arora
‘World has started to follow us in adopting age-old practices & remedies to boost their immunity and improve lifestyle’
After becoming a global leader in yoga and traditional medicine, India is steadily rising the ranks to lead the Fragrance & Flavour (F&F) industry globally. In an exclusive interview with Manoj Arora, Chief Perfumer & Managing Director of Sacheerome, we spoke to him about the post-pandemic trends in the F&F Industry, the impact of the Russia-Ukraine war on raw material supplies & prices, their company expansion plans, and how their fourth generation’s entry into the business has fared so far. Excerpts here:
- How does the fragrance & flavour industry look, post-pandemic? Has there been any impact on Sacheerome? If yes, how has the recovery path been?
Be it the flavours in food products like beverages, bakeries and cereals, or fragrances in toothpaste, soaps, cosmetics, detergents, deodorants, floor cleaners and sanitisers, both fragrances and flavours are a part of practically all products we use in our daily lives.
In the post-pandemic era, the world has seen a huge shift in the approach towards a healthier lifestyle. People are now increasingly seeking functional benefits from their everyday products. Today, holistic wellness and hygiene have become the first priority for consumers when it comes to purchasing food and non-food grade FMCG products, especially post-pandemic.
Traditionally, Indians have always been infusing spices and Ayurveda ingredients in their daily use. This includes oils and ingredients such as clove, cinnamon, cedarwood, nagarmotha, nutmeg, sandalwood, saffron, cardamom, peppermint, ginger, eucalyptus, and several others which have been an essential part of this industry in India. Not only did we go back to our traditional roots, but the world has also started to follow us in adopting age-old practices and remedies to boost their immunity and improve their lifestyles. Sacheerome’s range of products with natural aromatic ingredients are in high demand and accepted by consumers, who have been unaware of the value and benefits of these products, especially in Europe & USA.
At Sacheerome, the onset of Covid has led our R&D team to research and produce fragrance blends for numerous wellness and hygiene products. The team comprising the brightest minds in the industry was ably assisted by the marketing & consumer insights teams. In that context, the coronavirus crisis has had a positive impact on us.
- What does the order pipeline look like currently?
Our order pipeline is fully loaded at the moment and we are expecting these orders to materialise shortly. As a creative house, we are continuously developing new products for our key accounts to match their briefs and requirements.
- You've earlier spoken about employing three robots at the company's Delhi facility and also mentioned plans to add services of six more. Any update on that? Does that also mean you will be increasing your annual production capacity from the current 15,000 mt?
The addition of robots is not only to increase the production capacity but to add a bigger range of products to our portfolio. Definitely, the use of robotics will transform our manufacturing production lines and this in turn will help us to cater to a much larger customer base.
- Any update on the upcoming Noida facility?
Our upcoming facility at Yamuna Expressway Industrial Development Authority (YEIDA) will be 20 times bigger in capacity and in our range of products. It will be equipped with high-quality plant machinery to increase production efficiency. We hope to start the construction and place the order of plant & machinery very soon. We are expecting the facility to become fully operational in the next 2 years.
- Did the flaring up of prices have any effect on your company- as natural oils constitute a raw material for you? Your company presentation also spoke about minimal trickle-down of cost hikes to clients - would you be able to explain if you had to take in any of such hikes?
Yes, there is an impact on the rates and the availability of the raw materials, but we have a robust system of inventory management. However, during the Covid pandemic and the Russia-Ukraine war, there was no disturbance in the supplies despite the break in the global supply chain.
India is a hub of natural and synthetic ingredients while also maintaining global standards. The abundance of natural raw materials and low labour cost has made us highly cost-effective. Also, the growth of production volumes has kept us competitive in comparison to global giants.
- Are there plans to scale up presence across more countries? How has the recently added North American region fared?
We work with target audiences chosen according to our capabilities. We shall remain fully focused on India, which is the biggest growing market for us. At the same time, our focus has not shifted from USA, UK and UAE markets. We are also working to open new opportunities in the far-east region. After the launch of Sacheerome USA in 2022, we have been working closely with a number of major companies in the USA for their upcoming projects. Our presence there helps us understand the requirements of customers and ensure a much faster lead time to develop and deliver the products.
- Last year, at the World Perfumery Congress, you spoke about the fourth generation’s entry into the business. How have they fared? What are your future plans?
Since fragrance & flavour (F&F) is a niche market, it requires a lot of expertise, skill, experience & specialized knowledge to succeed in this industry. In practice, the confidentiality of new technology is maintained to the highest level, and all-proprietary information and knowledge is passed from generation to generation.
Belonging to the 3rd generation, I have been in the perfumery business for over 4 decades. About 10-15 years back, the 4th generation entered the family business as well. Having graduated in Chemistry, my son Dhruv Arora has studied business and management at Manchester University and has a degree in MBA from ISB. Soon after, he joined the company in 2011. On the other hand, my daughter Divya Arora joined the business in 2010 and is looking after Marketing, Strategy & Innovations. She is a postgraduate in Innovation Management from the prestigious Central Saint Martins, University of The Arts London. Both are working diligently and are actively involved in taking the company to a global level.
Though we are a family-owned business, our company is consistently yielding good results through the joint efforts of both young blood and experienced minds. We foresee multiplying our growth prospects in a short period.
- With the increase in demand for natural ingredients in the fragrance industry post-pandemic, do you envisage the need to ramp up cultivation areas for the same?
There is a huge transformation in the cultivation of natural ingredients in India. Just as Malaysia became Number One in palm oil production, India is taking the lead in the cultivation of aromatic plantations.
While Kerala is already known as the Spice Garden of the world,
Indian Sandalwood from south India and Agar from Assam are the most precious aromas sought all over the world. Meanwhile, Gujarat and Rajasthan are known for the cultivation of thyme and fennel. India is already a global leader in the production of Mentha and Citronella which grows in Central India. Right now, there is a purple revolution going on in Kashmir due to a huge plantation of lavender and several other flowers in the entire valley.
In India, there has been a steep rise in the number of educational courses on fragrances and ingredients by government-run institutions such as the Institute of Chemical Technology (ICT), CIMAP and National Horticultural Board (NHB) to name a few. In fact, the next decade belongs to India due to its different climatic conditions, soil, rain, and altitudes, which are suitable for the cultivation of almost all aromatic plants.
