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IFF's strategy to tap Indian market

By Our Corporate Reporter

CHENNAI DEC. 5. International Flavors & Fragrances inc (IFF), a world leading creator and manufacturer of flavours and fragrances, is planning to develop the fine fragrances market in India. With 1.2 billion people living in the country there is a significant market potential, according to Richard A. Goldstein, chairman and chief executive officer, IFF. He told The Hindu that even if two per cent of the population could afford to buy the products, it would turn into a significant rise in sales volume.

Mr. Goldstein said there was emerging opportunity in toiletry products, deodorants, cologne and other fine fragrances in India. At present the market share was 30-35 per cent in flavours and 12-15 per cent in respect of fragrances, he said.

The company was manufacturing products from its own facilities in Chennai and Chittoor besides through contract manufacturing centres from Bangalore.

Also a new contract facility had started functioning two weeks ago in Meghalaya, for turning out food colours, he said. There was also plan to promote the natural vanilla industry in India and the company had bought lands in Tamilnadu-Kerala border for developing these products.

The worldwide acquisition of Bush Boake Allen (BBA) in November 2000 and the subsequent global reorganisation and integration had helped to strengthen the business on all fronts, Mr. Goldstein said.

Out of IFF's total fragrance business throughout the world, fine fragrances including perfumes, colognes and personal products contributed 34 per cent, while the share of fragrances for soaps, detergents and household products was 44 per cent and the balance 22 per cent was from speciality fragrance ingredients used and sold to the company's customers and competitors, Mr. Goldstein said.

In the year ended December 2001 IFF's sales registered a rise of 26 per cent to $1.84 billion in comparison to 2000 reported sales with flavours accounting for $835.7 million and fragrances $1.01 billion.

The Asia Pacific region saw an increase of 30 per cent in sales at $286.2 million.

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