BUILDING A BRAND,STICK BY STICK – KARNATAKA FRAGRANCE
The Karnataka Fragrance Journey
Bengaluru-based Karnataka Fragrance is gaining traction in Indian and international markets asdemand for agarbatti continues to rise. The company has played a key role in boosting exports,contributing to the nation’s expanding footprint in the global fragrance industry. Company headMr Ibrahim Khalander revealed in an exclusive interview with Sugandh India that he inherited thebusiness from his father, who had been engaged in the agarbatti and raw materials trade since1970. His father specialised in supplying Halmadi, a widely used forest product, across India. Aftercompleting his studies in perfumery, Khalander launched hisagarbatti venture in Bengaluru, officially establishingKarnataka Fragrance in 2010. Following their marriage,Shehnaz Begum, his wife, took charge of fragrance andproduct quality. Currently studying perfumery, she isactively involved in perfumery research and thedevelopment of new products. Looking ahead—Karnataka Fragrance plans to expand into perfumes,candles, cosmetics, and attar. Shehnaz Begum isspearheading efforts to ensure the company maintainshigh-quality standards as it diversifies its product range.
BLUE MUSK IS OUR BEST SELLER BRAND: IBRAHIM KHALANDER
The company has strengthened itsposition in domestic and internationalmarkets with a diverse range of over 50products. The company caters to localconsumers while maintaining aseparate portfolio of export-qualityproducts, according to Khalander. Thecompany manufactures productsacross medium to high-end segments, with pricesranging from ₹3,000 to ₹6,000 per kg. It also offersloose products, priced between ₹250 and ₹1,000 per kg,ensuring a broad market reach. Domestically, KarnatakaFragrance sees its highest demand in West Bengal, theNorth East, and Maharashtra while also holding astrong presence in Tamil Nadu, Andhra Pradesh, andKerala. The brand is further expanding in Gujarat andRajasthan. On the global front, Karnataka Fragrancehas built a robust export network across the UnitedStates, Latin America, Africa, and the Middle East.Additionally, it supplies products to Chile, Panama,and Argentina and engages in job work for exports,including shipments to Malaysia and other internationalmarkets. With its expanding footprint, the companycontinues to scale operations, catering to evolvingmarket demands worldwide.
The company is tailoring its product range to meetdiverse consumer preferences across internationalmarkets. Ibrahim Khalander highlighted that fragrancetrends vary significantly by region, though demand forhigh-quality products remains universal. A highdemand for 20-stick packs is seen in the overseasbusiness, especially for flora sticks. However,international consumers purchase a variety offragrances. The company has observed a higherdemand for affordable bulk products in Africancountries, whereas Arab markets favour only premiumqualityofferings. In the Middle East and other regions,the Indian diaspora remains the primary consumer basefor these products. Karnataka Fragrance also supplies jobwork to the Philippines, Malaysia, and Indonesia, whereagarbatti is widelyused as a gift item. Premium gift packsare in high demand, particularly in the Middle East, SaudiArabia and Gulf countries. Khalander further noted ashift in Arab consumers towards Oudh, bakhoor, andsimilar fragrance products over traditional offerings. Byadapting to regional market trends, Karnataka Fragrancecontinues to bolster its global presence and expand itsproduct reach.
The company is witnessing a growing preference forhigh-quality and naturally scented products in domesticand international markets. Khalander, stated thatconsumers are increasingly looking for superior quality,natural fragrances, and appealing product packaging inproducts. The demand for traditional fragrances,including sandalwood, rose, jasmine, and fruit-basednotes, is increasing steadily. However, maintaining qualitywhile managing production costs remains a criticalchallenge formanufacturers. Khalander also noted thatthe market for high-quality and premium products,currently comprising 10–15% of total sales, is expanding.His observations during market visits indicate that 80% ofconsumers prioritise quality when purchasing fragranceproducts. Despite this trend, the largest market share(60–70%) is dominated by medium-quality products,while economy-range offerings account for only about20%. Recognising these market dynamics— the companycontinues to make a diverse range of products to cater toall price segments. The company is aligning with everevolvingconsumer preferences, which contributes tocementing its position in both domestic and globalmarkets.
Khalander also noted that the market for high-quality and premium products, currently comprising 10 -15% of total sales, is expanding. His observations during market visits indicate that 80% of consumers prioritise quality when purchasing fragrance products. Despite this trend, the largest market share (60–70%) is dominated by medium-quality products, while economy-range offerings account for only about 20%. Recognising these market dynamics— the company continues to make a diverse range of products to cater to all price segments. The company is aligning with ever-evolving consumer preferences, which contributes to cementing its position in both domestic and global markets.
They continue to expand their operations, with anew production facility underway on a one-acre site.Ibrahim Khalander shared insights into their growthand challenges. Mr Khalander, who has been involved inhis family business of supplying raw materials since2004, credited his industry connections and professionalsupport for the company’s progress. He acknowledgedthe contributions of key industry figures, including hismentor and brother-in-law Mr Ahmad of ForestFragrance, Siraj Bhai of Misbah, Rizwan Bhai of OrientalAgarbatti, and Mumtaz Bhai of Best Agarbatti. Initially,the company operated from a small factory, focusing onloose agarbatti production. Over time, Khalander shiftedhis focus towards brand-building, launching MysoreChandanam, a market favourite for nearly five to sixyears. Following its success, the company introducedBlue Musk, which remains its best-selling product today.
Khalander, who has been involved in hisfamily business of supplying rawmaterials since 2004, credited hisindustry connections and professionalsupport for the company’s progress. Heacknowledged the contributions of keyindustry figures, including his mentorand brother-in-law Mr Ahmad of ForestFragrances, Siraj Bhai of Misbah, RizwanBhai of Oriental Agarbatti, and MumtazBhai of Best Agarbatti.
Karnataka Fragrance now manufactures over 50 productranges, catering to medium to high-end marketsegments. The company tailors its export products tomeet the fragrance preferences of different internationalmarkets, ensuring a balanced focus on domestic andglobal consumers. With its continued expansion andcommitment to quality, Karnataka Fragrance issolidifying its position as a key player in the fragranceindustry worldwide.
Karnataka Fragrance is diversifying its productofferings to align with evolving market demands.Ibrahim Khalander revealed that the company primarilyfocuses on brown and white-scented products; as theyhave the highest market demand. Khalander noted thatwhen flora products saw a decline in demand, thecompany pivoted towards scented variants, introducingwhite-scented products as part of its strategy. Today,Karnataka Fragrance is proactive in scented and masalavariants to cater to diverse consumer preferences.Beyond its core offerings, the company has expandedinto dry variants and sambrani cups, with its ShuddhCup brand gaining significant popularity. Lookingahead— Karnataka Fragrance is preparing to launch wetvariants, having previously concentrated on dryproducts. Khalander highlighted that quality controlremains a key challenge in wet product manufacturing,given the high level of competition in this segment.Despite this, the company is committed to deliveringpremium wet variants to strengthen its market position.He further noted that demand for dry variants surpassesthat of traditional products in North Indian states.However, on a national and international scale,traditional products dominate consumer preferences.By expanding its portfolio and maintaining a strongfocus on quality— Karnataka Fragrance aims to reinforceits leadership in the fragrance and wellness industry.
