08 May Innovation is USP of CKC : Rishabh C. Kothari
The future of the incense sticks industry is very bright, but the leaders of the industry have to keep on doing new experiments and bring out new brands and fragrances according to the demand of the consumer and the market. One thing is clear that incense sticks have been used mainly in worship and religious functions, but in recent years the trend of incense sticks as room freshener in home and office has increased. People are using incense sticks to create a beautiful fragrant atmosphere around them and to freshen up the mood. Now it is a big challenge whether the agarbatti industry itself plays a leading role in it or gives the fresheners market to the perfume companies. Only time will tell if the agarbatti industry will be able to offer new products with new fragrances in good packaging and according to each consumer’s own need, only then its dominance will increase.
Left to Right: Mr Rishabh C. Kothari and Shree Chandrakant Kothari
Rishabh C Kothari, head of Kolkata-based CKC firm and president of FAFAI (Fragrance and Flavor Association of India) spoke candidly about the future and challenges of the agarbatti industry with ‘Sugandh India’. CKC being a known name in the fragrance industry, supplies fragrances and ingredients to the agarbatti industry. While narrating his entry into the fragrance industry, Rishabh Kothari told that his father Mr. Chandrakant Kothari was already in the business of fragrance. He used to order ingredients and sell them across the country. I loved fragrance since childhood. That’s why I used to go to the factory and my father’s office. I was fascinated to see the oil and aroma being created. Before joining business after my studies, I also went to Germany for training in fragrance manufacturing. After returning to India, I started corporatization of the company. Our company was known as Chandrakant Kothari Company or CKC. Then I adopted CKC in form of our brand. The name of my father’s factory was Swastik Industries. When I took over the business in 1972, the company was renamed CKC and now the company has completed its 50 years. Responding to a question from Sugandh India, he said that the demand for perfumes has increased, but today’s consumer wants something new. He wants new scented incense sticks and he also wants to experience new fragrances. He has no hesitation in doing new experiments and it is natural that according to the mood of the consumers, the manufacturers are now taking the risk and doing new experiments. Traditional fragrances such as sandalwood, mogra, bela, jasmine are used even today, but new experiments are needed in that too. Fancy notes, western perfumes and fruity notes have become a trend. Pineapple and Mango flavors are going well. That’s why now neither the manufacturer nor the consumer is accepting any restrictions and everyone is liking the new experiments. Earlier there were no fruit aromas, but now they are running prominently.
On the question of CKC making new perfumes, he said that we is our USP to do extensive survey and research to make fragrances according to the choice of consumers. Not only this, there is an attempt to innovate in the traditional fragrance as well. For example, the use of mixed fragrance has been started. The fragrance of sandalwood and mogra has remained the same for years. Now something new has been mixed in it. For example, mixed with saffron and basil, a new aroma was created. There is always an effort on how to give a newness to the old. An effort to provide consumer with something new along with keeping the traditional touch.
What is the new trend in the fragrance market these days? On this question, Kothari said that nothing new happens, the existing fragrances are changed through addition of ingredients. The fragrance that is liked today may not be liked tomorrow but the cycle goes on and the trend comes back. That’s why trends keep forming and changing. A good product lasts long. There is also a constant change in the aroma of incense sticks. On the question of increasing prices of raw materials in the market these days and their availability is less, he said that this is a continuous process of any market. Sometimes there is a shortage of one product, sometimes the price of another increases.
Therefore, the manufacturer also takes different steps to maintain the quality, cost and profit since the chemical cannot be changed. For example, 3 years ago there was a fire in the PSF factory. It was a chemical factory and many chemicals were destroyed. One of those chemicals which was Rs 300 at that time, its price rose to Rs.3000 due to shortfall. Therefore, the question of shortage of raw material and increase in price always remains and we work accordingly on how to manage it and keep the product in good shape, only by reformulating and repackaging the manufacturer work. He said that DEP is the main raw material of incense sticks, but its price has increased by 25 percent. So how can that be countered? Perfume can play the main role in this, because if the fragrance is better than the deficiency of DEP can be made up. Ups and downs are part of every business. Responding to a question, he said there are technical problems in the industry as well. Generally 3 types of chemicals are used in incense sticks industry. Aroma Chemicals, Natural Essential Oil and Gum and resinoids.
The import duty of Aroma Chemicals is 7.5%. Essential oil is 20 percent and Gums & Resinoids is 30 percent. These are raw materials but if we import finished perfumes from France, Germany and China, the current duty is 10 percent. In such a situation, it is expensive to locally manufacture and sell. For this a delegation met the government. This problem has escalated over the years. We do not want the government to decrease its revenue by reducing import duty, but also do not want to burden ourselves either. Change is necessary to promote local oil perfume companies. Otherwise, cheap importers are taking advantage. If the tax is reduced, local producers will benefit and Prime Minister Narendra Modi’s objective of ‘Make in India’ will also be strengthened.
On the problems faced by the agarbatti industry, he said that like other people, there are many problems here. These days it is a matter of switching off raw materials, bamboo sticks and imported incense sticks. Ban on bamboo imports should have been imposed gradually, as bamboo production cannot increase suddenly in the country. First increase the yield and then stop it. In this context, a delegation of businessmen had gone to Delhi two-three years ago, but till now nothing has been done on it.
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