NEW DELHI, 22 September 2022: Addressing the 1st FICCI Fragrance Business Summit, B B Swain, Secretary MSME, Government of India said that the Ministry would like to lend all the support for the growth and development of fragrance industry in India. He emphasized that a large number of MSME players are part of this sector, and it is important to handhold them with suitable interventions in sustainable technology and infrastructure.
There is a growing local and export demand for these products and the industry has an inherent potential to grow further in India, Swain said. It is important to build a sustainable supply chain, strengthening each link in it. The Ministry of MSME has a Fragrance & Flavour Development Centre (FFDC) at Kannauj, which extends technology and skilling support to the MSMEs. Encouraged by its contribution to the MSME sector and its outreach, one more Technology Centre is being established in Imphal, Manipur said B B Swain, Secretary MSME.
He mentioned that as of now there are 26000 industries registered under MSME in fragrance and flavour sector. The industry has an inherent potential to grow and meet the demands not just in India but outside too.
The Secretary stated that one of the most important approaches would be to bring MSMEs in the formal ambit. As per an estimate made in 2016, there are more than 6 crore non-agricultural unincorporated entities in the country. And in just 26 months, as many as 1.09 crore MSMEs have already registered on Udyam portal. These enterprises account for employment given to 8.2 crore people, of which 1.9 crore are women. Ministry of MSME is working with SIDBI to formalize the ‘micro’ of the micro enterprises, so that enterprises which do not have the mandatory requirement of PAN but do have documents to establish credentials of their enterprise, can also be brought in the formal sector and can avail benefits of Priority Sector Lending and those of our programs and schemes.
Sanjiv Mehta, CEO & MD, Hindustan Unilever Ltd and President FICCI (HUL is the largest user of fragrance globally) urged the fragrance industry to work more in the area of sustainable and safe ingredients for the cosmetic and personal care industry and also enlarge the pool of trained perfumery professionals. He emphasized the following:
• India should develop capability and capacity to evaluate such unsafe ingredients as is the case in other economies.
• Develop standards with the support of BIS and Indian industry to achieve highest safety standards so that our products are recognised safe not just in domestic market but globally too.
• Fragrance houses along with institutes should work on developing ingredients used in fragrances that are 100% biodegradable. This is critical from sustainability point of view. Also, more and more consumers are now interested in buying brands that embrace sustainability and want to know if a fragrance is environmentally friendly and made with natural ingredients. Globally the trend is that fragrances with sustainable components are getting more sold than the other fragrances.
• Fragrance industry in India should work on delivering high quality fragrances at a lower cost.
• Need to enlarge the pool of qualified professionals, artists etc for the fragrance industry. Role of our academia is important here. Need to have subjects that look at this area at undergraduate and may be over the period at the post graduate levels too. There are less than 1000 qualified perfumers worldwide.
Michael Carlos, Chairman of FICCI Taskforce on Fragrance and Chairman Emeritus, IFRA (International Fragrance Research Association) said that India is a large source of exporter and employment in this sector. In the US$ 4-billion market, half of the market is through exports. India excels in exports of natural essential oil and spices flavors which is a major component. The sector has seen growth of 10-11% consistently and is a huge source of employment directly and indirectly i.e., 2 million people involved in the entire ecosystem. The critically important aspect is to focus on sustainability- zero carbon waste, the 80% of which is produced in supply chains. The consumers right to know also is nowadays a key factor, huge level of transparency will help the sector.
Sant Sanganeria, Chairman and MD, Ultra International Ltd said that the net zero commitment as envisioned by our hon’ble Prime Minister would require efforts from all relevant stakeholders and not just the government. Green fragrances are critically important technologically. Being green is no longer a Cost instead a catalyst for innovation, new market opportunity, wealth creation as well as tool for sustainable global economy.
Bhuvana Nageshwaran, Co-Chairman, FICCI Taskforce on Fragrances and Director F&F, Ultra International Ltd said fragrance industry has been receiving infrastructural support, and capacity in terms of testing centers, technological centers provided by the MSME Ministry which was highly appreciated. The perfumery course will also be soon introduced in graduation for budding professionals in this field in certain colleges and industry is working with the academia on the same.
Mercy Epao, Joint Secretary, MSME said that the ministry would like to engage with this sector more as government is trying to make India manufacturing hub and excel in exports. There are many raw materials which are yet to be explored and simultaneously many new technologies that need to be encompassed to boost this sector. The government is keen to improve quality and infrastructure through its technology and testing centers. The mission of these centers is to serve, sustain and upgrade the farming entrepreneurs of essential oil, fragrance, and flavors. The Himalayan belt is yet to be explored. The north-east area is very rich in medicinal plants, aroma plants which can be explored and tapped for Fragrance sector.
Speaking at the Valedictory session of the Summit, Justin Mohan, Secretary, National Biodiversity made the industry aware about the National Biodiversity Act (regulates the sustainable use of biological resources on benefit sharing basis with the local communities) and urged them to apply under the Act for the sustainable use of these resources.
1st FICCI Fragrance business summit was led by FICCI taskforce on fragrance. The occasion was graced with the presence of B. B. Swain, Secretary, Ministry of MSME, Sanjiv Mehta, CEO and Managing Director, Hindustan Unilever Limited; President, Unilever South Asia; Member, Unilever Leadership Executive (Unilever Executive Board); President, FICCI; Michael Carlos, Chairman, FICCI Taskforce on Fragrances and Chairman Emeritus, IFRA; Bhuvana Nageshwaran, Co-chairman, FICCI Taskforce on Fragrances and Director F&F, Ultra International Ltd; Hans Holger Gliewe, Chairman, IFRA; Sant Sanganeria, Chairman and M.D, Ultra International Ltd; Dirk Hudig, Secretary General, European Risk and Innovation Forum; Martina Bianchini, President, International Fragrance Association (IFRA); Jyoti Vij, Deputy Secretary General, FICCI along with other dignitaries from Indian and International Fragrance industry.