Synthetic Mentha and govt policies are a challenge:Vaibhav Agrawal
Norex is among top 5 producers of Menthol and Mint products
India is the global leader in mentha cultivation and production, accounting for the highest world’s mentha production. Annually, India exports approximately 25 thousand metric tons of mentha products to other countries, which covers 99% of Natural Mint products exports of the world.. Norex Flavours Private Limited, based in Amroha (U.P.), is one of the top five companies in India producing Menthol and Mint Products. Norex has other product categories, including fragrances, flavours, essential oils, and aroma chemicals. The company exports its products to over 80 countries, including the USA, Japan, Europe, Russia, Latin America, Asian and African countries. In a special conversation with Sugandh India, Mr Vaibhav Agrawal, the Managing Director of Norex Flavours Private Limited, stated that despite India’s position as the top producer of Mentha worldwide, the industry faces significant challenges due to the mass production of synthetic menthol. The government’s policies create a bit of resistance in the situation. Nevertheless, Norex remains steadfast in its goal to transform the senses across the globe. The company has established a subsidiary and a warehouse in the USA for just-in-time delivery to clients. Mr. Agrawal further introduced other product categories that Norex comprises, i.e., Flavours, Fragrances and Essential oils; the company is also expanding its business in these respective categories across the globe. Norex is an ISO-9001, FSSC-22000 and WHO: GMP certified Company.
In an interview with Sugandh India, Mr Vaibhav shed light on the history of Norex, a family-owned and managed company. Established in 1994 as Narain Terpene & Allied Chemical Incorporated into a Private Limited Company in 2008 and renamed Norex Flavours Private Limited, Mr Vaibhav Agrawal himself took over the business in 1998 after completing his education in Engineering. Initially, Norex only produced menthol crystals and mint oils and operated only in the domestic market. However, the innovative mindset of Mr Vaibhav and continuous team efforts gradually transformed the company into an export-oriented one. In 1999, Norex received its first export order. Subsequently, the company underwent large-scale changes in production and technology. Instead of relying on “jugaad” (informal improvisation), Norex made many technical advancements needed to improve the product range’s quality standards.
Today, after 29 years, Norex has become one of the top players in the mint industry and is also growing in the F&F industry. The company supplies menthol and mint products, flavours, Fragrances and essential oils to various FMCG, Oral Care, Confectionery, Cosmetics, Pharmaceuticals and Tobacco companies.
In response to a question about competition, Mr. Agrawal explained that while 30-35 companies export menthol from India, Norex stands out because they believe in quality rather than quantity; Norex manufacturing facilities are accredited with many prestigious international certifications and approvals. Norex was the first unit to get Pharmaceutical WHO: GMP and Written Confirmation for Menthol and mint oils in India as per the EU Government’s API Directive; these measures help Norex stand out and are the preference of most multinational companies.
Mr Agrawal, informing about the history of menthol cultivation in India, stated that the story of Mentha dates back to 1963 in India when M/s Richardson Hindustan, now (P&G) in the Rampur area, took some development and farming work. Gradually, volumes of Mentha Oil increased to a few hundred tonnes in India, but in the absence of institutional support, it was not growing much. To address the problems facing the farmers cultivating Cornmint, the Central Institute of Medicinal and Aromatic Plants (CIMAP) initiated a genetic improvement program. In the late 80s, Cornmint cultivation increased with the opening of various small and medium-sized distilleries spread throughout UP to Bareilly, Chandusi, Moradabad, Rampur, and Sambhal. Due to all-around progressive efforts, in the late 1990s, India produced about 75% of the international requirement for Arvensis oil. When asked about the future of mentha,
Mr Agrawal said that India is currently the top producer of natural menthol, but there is increasing production of synthetic menthol in China and Europe. As a result, the price of natural menthol has decreased. Even though synthetic menthol has gained many markets, Norex has always emphasised natural Menthol and mint product production. One of the reasons behind this is that the livelihood of approximately 20 lakh families in Uttar Pradesh depends on mint cultivation. Additionally, thousands of people are employed in processing units as well.
On a question regarding varieties of Mint Crops, Mr Agrawal informed us that though there are many different types of Mint Crops, three varieties are best fit for commercial usage. Mentha Arvensis oil is Popularly known as “Shivalik” or “Kosi” among Indian farmers. Mentha Piperita Oil is Primarily exported in natural form, popularly known as “Peppermint,” worldwide. Mentha Spicata Oil is Primarily shipped in its natural state, popularly known as “Spearmint” worldwide.
Asking about the Awards and recognitions of Norex, Mr Agrawal stated that Norex has been Several Times “FIRST AWARD WINNERS’’ in the SME Panel for Exports from the Indian Government. The company has received over 15 awards from the Chemical Export Promotion Council (CHEMEXCIL), the Pharmaceutical Export Promotion Council (Pharmexil), the Federation of Indian Exporters Organization Export and the First prize from the Export Promotion Bureau by the UP Government. Not only the Indian Government but also Mr Vaibhav Agrawal was also felicitated by the German Ministry of Economic Affairs for his outstanding contribution to increasing trade between India and Germany. He was part of the selected Ten CEOs invited for lunch by the Hon’ble US Ambassador to India at the US Embassy, discussing investment and bilateral trade between the USA and India.
On the question regarding the challenges in the business, he said that synthetic menthol and indifferent policies of the government are significant challenges for us. Mentha is an export-oriented industry, and while on the one hand, exporters are provided with subsidies by the government, there are many restrictions as well. For example, in UP, there is a mandi tax of 1.5%, due to which our cost increases compared to synthetic Mentha. The government gives us discounts on paying farmers by cheque, but small farmers who bring goods in small quantities want the payment in cash. Similarly, exporters who used to get GST refunds automatically, will now have to apply for GST refunds manually from October 1st.
Mr. Agrawal said that Norex works diligently to become a leading supplier of exceptional flavours and fragrances worldwide. He mentioned that there are both small companies and large MNCs in the flavours and fragrances market in India. Unfortunately, some smaller players lack the necessary technology and aren’t consistently recognised for quality. Thus, Norex aims to become a progressive player capable of fulfilling everyone’s needs. He shared that, in the past, 99% of Norex’s business depended on exports, but we now export 85% and supply 15% to the domestic market.
Talking about being active in any social activities, Mr Agrawal said that Success brings responsibility, believes in growing and wants society to grow with him. Putting education above everything else, The Norex family has also established a school, providing good quality English medium education to rural and local students at a nominal fee. Norex Foundation is also engaged in many activities like organising regular free health check-ups, treatment camps for poor and underprivileged people, and distributing tricycles to people with disabilities. Norex also runs a sustainability project, SANKALP. The goal of this pilot project is to provide technical support and allied Agri inputs to smallholder farmers, including women (Women empowerment through Literacy and WaSH), by strengthening producer groups and local institutions and forging market linkages to support farmers meet the volume quality, and cost parameters of Mentha Oil buyers sourcing directly from farmers to increase farmers’ income, Women Empowerment & Enhance Resource Optimization.
Informing about the future of Norex, Mr Vaibhav stated that looking ahead, Norex’s strategic focus revolves around innovation, sustainability, and global expansion. The main goal is to continue pushing the boundaries of product development, harnessing the latest technologies to create new and exciting offerings that resonate with evolving consumer preferences. Sustainability is a core value for Norex. The plan includes strategic international expansion to introduce our exceptional products to new regions and diverse audiences, recognising collaboration and partnerships’ importance by fostering relationships with industry experts, research institutions, and clients. In the end, Vaibhav Ji said that the company does not do business only for profit. When it comes to business and implementation, even though you know it is never enough, every day is a new learning day. At the same time, you have your own expertise; as a businessman, you need to stay up to date with your environment. From what is new, what is not to what will happen in the coming day, you need to be well versed.
