02 Jul No compromise on quality : Vinay S Raj
Karnataka Aroma is a leading provider of a wide range of ingredients including Solvent, Essential Oils, Fragrances, Natural Oils to the fragrance industry companies in the country with an aim to supply high quality products to all its customers. The company is currently providing Aroma Chemical products to India from multinational companies like BASF, Takasago, Symrise and from many countries including Indonesia, Spain, France. Karnataka
Vinay S Raj, head of Karnataka Aroma, in an exclusive conversation with ‘Sugandh India’ shares that it was founded with a vision. Our ancestral solvent business in Bangalore, Karnataka was doing well. Initially, we used to provide the incense sticks industry with raw materials.
One day we received a proposal for distribution of Aroma Chemicals which was in great demand in Bangalore, so we accepted. Then we started supplying Aroma Chemicals outside Karnataka as well. We started acquiring commodities from many multinational companies especially companies like BASF, Takasago, Symrise. After this we started with Natural Oil and as per the demand, the product portfolio was diversified. Also, to strengthen the service and distribution network, warehouses were opened in Bangalore as well as in metros like Chennai and Mumbai and then the work increased, but we never compromised on quality.
In response to a question, he told that his father was active in this business for 50 years and his only principle was that one should never compromise on the quality and measurement. Today, adhering to the the same principle, the company is supplying on a large scale from South India to the northern states as well. Our delivery system is also a big reason for this success. All the order booking that are received till 6 pm are dispatched on the same day. Our customers themselves state that our service is faster than the traders in Mumbai and elsewhere. Apart from this, the company emphasizes that cheap raw materials should not be used to earn more profits. We prefer to use expensive raw material to maintain best quality, because there is no shortcut to success. The product portfolio is increasing with time and demand. We also emphasize on new and improved ingredients. Earlier we used to deal only in Fragrance and Flavor, but now supplying Natural Aroma Essential Oil as well. Together with our manufacturers, we provide good quality commodities as per the demand in the Indian market. For this we also order goods from various countries including Indonesia, Spain, France, etc. We only procure goods from the best manufacturers. Also, we always maintain and keep our inventory high so that our customers never feel the impact of shortage of commodities.
The main objective of the company has always been customer satisfaction and we continuously work on it. We have a very well trended team backing us up, who are like family members and work with full dedication. The company does not give them any target, but they work with full capacity, ability and strength for the betterment of the company. He said that BASF manufactures very high quality products. Apart from this, there is also Symrise. We have been getting a lot of support from all of them. There is a demand for good fragrance in the agarbatti industry, for that we have been continuously getting the best fragrances from these companies. German companies never compromise on quality. So through them we give the best products.
On Sugandh India’s question on how the company is dealing with the increase in raw material prices? Vinay said that the times are difficult, but our customers also understand it. For those who are our permanent customers, we provide them with accurate market reports and cost information, so that they do not suffer. They also know that the prices are increasing continuously. There has been a problem in the supply chain of ingredients. To tackle this, we have increased our storage capacity from 30 days to 75 days. Keeping more stock than necessary, so that there is no shortage in supply. Although this is increasing the cost, but it has to be done so that the supply chain of the products of the customers is not interrupted.
On the question about the trend and demand for new fragrances has increased in the new generation? He said that the company continues to work on this. We discuss with our customers. Information on market demands, trends and requirements is obtained through various channels. The information that we get from our customers, we pass on to our manufacturing companies. Along with this, we also pass on the new ingredients that our manufacturers bring or the ingredients to improve the existing products, as samples to our customers. In this way, new products and ingredients are brought according to new trends and demands.
On the future plans related to incense sticks industry, he said that there are plans to improving the supply chain, providing better ingredients, better molecules and 100% natural oil. The way the demand for quality products is increasing in the agarbatti industry is a good sign. There was a slight interruption due to the Covid. Festivals and celebrations were not taking place, but now everything has opened up and things have started afresh. He said that the company has set up a warehouse on 6 acres as per the requirement of the market. Storage facilities are being increased further so that the consumers do not face shortage of raw materials. Transport facilities are being increased. Efforts are being made to supply molecules in ISO tanks instead of barrels. Work is being done on how to provide best quality molecules without reducing the quality and at cheap rates.
On the question related to the challenges faced by the incense sticks industry, he said that there are challenges in all types of business. The agarbatti industry is also facing challenges for the last four-five years. Earlier there was no excise tax on it, but now GST has been imposed. Due to demonetization the industry suffered a lot. Then the imposition of ban on bamboo has also created difficulties. In this way the industry has been facing and fighting the challenges continuously for 5 years.
In response to the question related to the policies of the government, he said that for example, there are many such raw materials which are used in both fragrance and flavour. Now even though we are using it only for fragrance but still it needs go under the checks of Food Safety and Standards Authority of India (FSSAI). FSSAI has now intensified the investigation. This is causing initial problems. But in a way it is also good. There has to be a quality check somewhere. The industry will also learn from this and prepare itself according to the new circumstances.
In response to a question, he said that we initially we supplied solvents through Karnataka Chemical Industries, but now we also into Aroma Chemicals, Rubber Chemicals, Plastic Granule Division of Indian Oil Corporation, and also supplying Food and Pharmaceutical Ingredients. Along with this, we have a diverse portfolio.
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