The SSI sector in India has a very wide business opportunity as it is still the untapped market. From about 80000 units in the late 1940s to over 3.3 million units today, the sector has been proving its mettle time and again. The SSI sector in India alone contributes 7% to India’s GDP.
Fragrance industry today is proving increasingly popular in India, as the population continues to increase its expenditures on increasingly sophisticated personal care products containing greater amounts of fragrance. Fragrances are composed of a blend of aromatic oils and compounds, solvents, and fixatives. These ingredients combined in a mixture create a pleasing scent to be used for living spaces, humans, animals, or objects. Fragrances can be produced from plant or animal extracts, or via synthetic sources Fragrance oil can be used to produce scents as it is one of the main ingredients in preparation of scents. According to industry estimates, the size of the total domestic luxury perfume market is around Rs 600-700 crore and is growing at a rate of 20-25 % year-on-year. Wash products including soaps, hand washes and shower gels, currently account for 42 percent of this category, where as shampoo, hair oil and fine fragrances account for 5, 3 and 2 percent of the market respectively. Fragrance oil can also be used for the preparation of incensed candles (Agarbattis) etc.
Today, floriculture industry in India is highly untapped, accounting to just 0.18 percent of our GDP. Fragrance industry will provide a great market opportunity in floriculture to rural farmers. Today very small part of the agricultural land is used for floriculture. So the profit margins are very less for farmers. However we can encourage these farmers to grow variety of high yield flowers and offer a bulk deal to them at competitive market prices. This will increase their profit margins.
Competitive Edge -