Oriental Aromat. Management Discussions


During Calender Year(CY) 2023, the global economy reflected resilience in its growth momentum by positioning itself towards a positive outlook. The beginning of CY 2023 saw hindrances, such as inflationary pressure mounting, the ongoing Russia-Ukraine conflict, supply chain disruptions, and increased energy prices. To give a boost to economic activities and curb inflation, the central banks globally raised policy rates. Gradually, with the easing of the supply chain, and reduction in headline inflation following lower energy & food prices, the global economy witnessed a growth rate of 3.4% in CY 2022, as per the International Monetary Funds April 2023 forecast.

Emerging economies continued to outperform advanced economies and are poised to expand from an estimated 3.9% in CY 2023 and 4.2% in CY 2024. The growth premium for these economies is expected to increase further with a probable economic recovery in the second half of CY 2023. On the other hand, advanced economies are expected to see a drop in growth to 1.3% in 2023, followed by a slight increase to 1.4% in 2024. This slowdown is primarily due to central banks continued tightening of monetary policy, labour market softening, and persistent disruptions in the European energy market. Moving forward, growth in advanced economies is projected to recover in CY 2024 with easing policy headwinds and gradual stabilisation of energy markets.

Owing to calibrated policy support from nations and the revival of economic activities, inflation is estimated to decline to 7.0% in CY 2023 and 4.9% in CY 2024. Furthermore, the IMF also predicts global growth to reach 2.8% in CY 2023 and gain momentum in CY 2024, reaching a growth rate of 3.0%.


The Indian economy has retained its steady growth and has emerged as one of the fastest-growing economies in the world. Despite global challenges and tighter domestic monetary policies, FY 2022-23 saw Indias continued strong growth momentum, underpinned by a key focus on infrastructure development and private sector consumption. According to the National Statistical Office, Indias GDP grew 7% in FY 2022-23.

Since the beginning of FY 2022-23, India has been grappling with inflationary pressures, while maintaining a steady growth trajectory. In response, the Reserve Bank of India implemented a series of rate hikes to ease inflationary pressures. The Reserve Bank of India raised the repo rate five times in a row, reaching 6.50% in FY 2022-23. In April, during its first bi-monthly monetary policy for FY 2023-24, the RBI chose to keep the repo rate stable, indicating that inflationary pressure on the economy is slowly decreasing. Given Indias synchronisation with the growth cycles of developed nations, global spillovers, high inflation, and contractionary monetary policies remain causes for concern. As per S&P Global Ratings, Indias economic growth is expected to persist on a strong foundation, with a projected growth rate of 6% in FY 2023-24. This will be driven by the Governments policy support, increased infrastructure spending, and emphasis on self-reliance, or Atmanirbhar Bharat. Thus, shaping its positive long-term economic prospects.

Source https://pib.gov.in/PressReleasePage.aspx?PRID=1903091 https://www.thehindu.com/business/Economy/expecting-slowdown-in-indian-economy-to-61-in-2023-from-68-in-2022-says-imf/article66452776.ece https://www.hindustantimes.com/india-news/retail-inflation-shoots-up-to-3-month-high-of-6-5-in-jan-as-food-prices-bite-101676312602815.html

Indian Economic Growth (% Change)



The global chemical market successfully overcame the challenges it faced in CY 2022 and is now poised to lead the industrys transformation in the coming years. In CY 2023, the market grew to USD 5,079.29 Billion from USD 4,700.13 Billion in CY 2022, representing a CAGR of 8.1%. The growth was positively impacted by low-interest rates in most developed countries, facilitating investments in process improvements.

However, the industry is facing challenges in chemical value chains worldwide. Europe is experiencing supply-driven inflation, while North America is experiencing a demand-driven downturn due to a decrease in consumer sentiment and willingness to spend. As a result, the industry is re-evaluating its geographical presence to ensure future competitiveness. In recent years, production has shifted towards Asia, particularly China, owing to lower labour and energy costs, coupled with high demand growth from customer industries in the region.

The chemical market is expected to continue growing and reach USD 6,851.59 Billion in 2027, with a CAGR of 7.8%. The adoption of sustainable and eco-friendly processes is a crucial aspect of the chemical industrys growth and development. Advances in technology and chemical sciences enable the chemical industry to utilise alternative fuels to produce chemical products. This shift towards sustainable practices not only benefits the environment but also ensures industrys long-term

growth and profitability. As consumers become more environmentally conscious, demand for sustainable products and production processes is anticipated to rise, making sustainability a key factor in the global chemical industrys future prosperity.


https://www.globenewswire.com/news- release/2023/04/21/2652045/0/en/Chemicals-Global-Market- Report-2023.html

https://www.oliverwyman.com/our-expertise/insights/2023/jan/ chemical-industry-outlook-for-2023-and-beyond.html

Global Specialty Chemical Industry

Specialty chemicals are a diverse range of chemical productsthataredesignedforspecificapplicationsand used across various industries, including automotive, construction, food & beverage, pharmaceuticals, and textiles, among others. These chemicals are typically produced in small quantities with unique formulations and have high value-added properties that provide specific benefits to end-users. The global speacialty chemicals market was valued at US$ 738.23 billion in 2022 and it is estimated to grow to US$ 998.94 billion by 2028 with 5% CAGR during 2023-2028. This market constantly evolves due to changing consumer demands, technological advancements, and shifting regulatory landscapes. Moreover, the specialty chemical market is experiencing significant growth in several regions, especially in the Asia-Pacific region, due to strong demand from end-user industries and investments in research and development (R&D).

Source https://www.businesswire.com/news/home/20230518005615/ en/Global-Specialty-Chemicals-Market-Report-2023-A-738.23-Billion-Market-in-2022---Forecasts-to-2028---Rising-Demand-For-Sustainable-Specialty-Chemicals-High-Performance-Materials---ResearchAndMarkets.com

Key Trends


The specialty chemical industry is responding to environmental concerns by investing in sustainable R&D, focussing on developing bio-based chemicals and renewable energy sources as alternatives to traditional products.

Industry 4.0

The integration of digital technologies with traditional manufacturing processes, known as Industry 4.0, is enabling specialty chemical companies to improve product quality, increase efficiency, and lower expenses. Technologies, such as Internet of Things (IoT), automation, and robotics are being leveraged for these objectives.

Health and Wellness

Specialty chemicals are being formulated to improve the safety and efficacy of pharmaceuticals and medical devices, while also providing functional benefits, such as improving digestion, reducing inflammation, or boosting immunity. The growing focus on health and wellness is fuelling the demand for such products.


The specialty chemical industry is undergoing a transition by digital technologies, such as artificial intelligence, machine learning, and big data analytics. Companies are using these technologies to improve efficiency, reduce costs, and enhance product performance.


Consumer demand for personalised products is driving the development of specialty chemicals that can be tailored to individual needs and preferences. For example, specialty chemicals are being customised for specific skin types, hair types, or dietary needs.

01 North America

The presence of established chemical manufacturers and strong demand from end-user industries, such as automotive, construction, and electronics make North America a mature market for specialty chemicals. Foreign and domestic specialty chemical manufacturers operating in the region are set to enjoy lucrative business prospects due to the soaring demand for novel chemicals for construction activities in the US and Canada.


Latin America is a growing market for specialty chemicals, driven by increasing industrialisation and urbanisation in the region. Growth in end-user industries, such as construction, automotive, and agriculture is fuelling demand for specialty chemicals.

03 Europe

Europe is another mature market for specialty chemicals, with a strong presence of chemical manufacturers and significant investments in R&D. The adoption of sustainable chemical compounds for water treatment applications is expected to accelerate the growth of the regional market.

04 Middle East and Africa

The Middle East and Africa are emerging markets for specialty chemicals, driven by significant investments in infrastructure development and increasing demand from end-user industries, such as construction, automotive, oil and gas. The growth of the pharmaceutical industry is also propelling demand for specialty chemicals in the region.

05 Asia-Pacific

The Asia-Pacific region is the largest and fastest-growing market for specialty chemicals, driven by the regions strong manufacturing base and growing industrialisation. Additionally, the presence of small and medium enterprises in the chemical industry in India is expected to contribute to regional market growth. In 2020, the Asia-Pacific regions market size stood at USD 291.2 Billion.

Source https://www.globenewswire.com/en/news-release/2023/04/13/2645878/0/en/With-4-7-CAGR-Specialty-Chemicals-Market-to-Worth-882-6-Bn-by-2028-Fortune-Business-Insights.html


Indias rapid economic growth, expanding middle-class, and lower operational costs make it a potential consumption and manufacturing engine for the global chemical industry. As a significant player in the global chemical industry, India ranks 11th in exports and 6th in imports worldwide (excluding pharmaceuticals). The countrys chemical manufacturing industry is highly diversified, covering more than 80,000 commercial products, which is essential for modern manufacturing industries ranging from soaps to automobiles.

According to the Ministry of Petroleum and Natural Gases, the market size of the Indian chemicals and petrochemicals sector is currently US$ 190 Billion. The sector is expected to witness a great demand and impacted by the evolving consumer preference to reach the valuation of US$ 1 Trillion by 2040. The chemical industry contributed 7% to Indias GDP in FY 2022-23 and accounted for approximately 14% of the overall Index of Industrial Production (IIP). The Index of Industrial Production of Chemical & Chemical products achieved a record of 137.2 in July 2022, surpassing the lowest value of 109.1 recorded in May 2021.

Indias Chemicals & Petrochemicals Sectors Market Size (USD Billion)

USD 300 Billion
USD 178 Billion


Chemical companies in India grows by leaps and bounds, Livemint, June 2022

The Indian Government recognises the chemical industry as a key growth element and aims to increase its share to ~25% of the GDP in the manufacturing sector by 2025. To achieve this, the Government has undertaken various steps: Mandating Bureau of Indian Standards (BIS) like certification for imported chemicals to prevent dumping of cheap and substandard chemicals into the country

Allocated 173.45 Crore (USD 20.93 Million) to the Department of Chemicals and Petrochemicals in the Union Budget 2023-24 to enhance the production capacity of Indian chemical companies and encourage exports of specialty chemicals in the global market Allocated incentives worth 6,238 Crores (USD 832 Million) for the chemical sector under Product Linked Incentive scheme, which aims to enhance the competitiveness of domestic manufacturing and reduce import dependence Introduced PLI Schemes to promote Bulk Drug Parks, with a budget of 1,629 Crores (USD 213.81 Million) Unveiled 2034 vision for the chemicals and petrochemicals sector to explore opportunities to improve domestic production, reduce imports, and attract investments in the sector India is forecasted to account for over 20% of the worlds incremental chemical consumption in the next two decades, with domestic demand expected to reach USD 850 Billion to USD 1,000 Billion by 2040. Furthermore, as one of the leading producers of many chemicals used in bio-friendly products, India is well-positioned to benefit from the growing global demand for such products. Despite challenges, such as rising crude oil prices and inflation and supply chain disruptions, the Indian chemical industry has shown resilience. The Governments ‘Make in India campaign and the Production Linked Incentive Scheme (PLI) are anticipated to significantly boost the industrys growth. Owing to supply chain disruptions in China, the Indian chemical manufacturing industry has witnessed a surge in opportunities. Moreover, the implementation of anti-pollution measures in China is likely to further bolster the prospects of Indian chemical manufacturers. Notably, the Petroleum, Chemicals and Petrochemicals Investment Regions (PCPIR) policy is projected to attract a staggering investment of USD 280 Billion by the year 2035.

Indian Specialty Chemical Industry

The Indian specialty chemical industry has seen exponential growth in recent years, with the specialty chemical segment being one of the fastest-growing segments in the Indian chemical sector. This growth can be attributed to various factors, such as increased demand from end-user sectors, favourable Government policies, and a growing domestic customer base. Indias specialty & fine chemicals market size was valued at US$ 46.66 Billion in 2022 and is projected to register a CAGR of 9.3% from 2023 to 2030.

Source https://www.grandviewresearch.com/industry-analysis/india-specialty-fine-chemicals-market-report

Indian Specialty Chemical Industrys Market Size (USD Billion)

Specialty chemicals contribute to more than 50% of chemical exports, and the adoption of the ‘China plus one strategy is expected to draw chemical manufacturers to expand their production capabilities in India. Furthermore, plant closures in Europe provide a ‘Europe plus one opportunity for Indian chemical players, who are considering significant capex plans to gain market share. With relaxed Covid-19 pandemic norms and China opening up, the optimism around both the ‘China plus one and ‘Europe plus one opportunities is a significant factor driving higher demand for Indian manufacturers.

All sub-segments of the specialty chemical sector have undertaken significant capex in the past three fiscal years, with a similar size of capex currently underway and expected to be completed by the end of FY 2023-24. The next phase of growth is anticipated to occur post-completion and stabilisation of this capex. The specialty chemical segment is the strongest pillar of Indias chemical sector, with various segments being driven by rising demand from end-user industries, such as food processing, personal care, and home care. The Indian market for specialty chemicals is projected to reach USD 64 Billion by 2025, accounting for 20% of the global chemical industry, with demand growth from export/end-user industries likely to drive this increase.

Source https://www.mckinsey.com/industries/chemicals/our-insights/india-the-next-chemicals-manufacturing-hub https://www.ibef.org/industry/chemical-industry-india https://www.indianchemicalnews.com/policy/budget-2023-24-industry-hails-change-in-customs-duty-structure-and-green-initiatives-16271 https://www.livemint.com/companies/news/acme-group-and-igl-partner-for-green-hydrogen-opportunities-in-new-delhi-india-s-energy-sector-11683283074133.html


The global flavours and fragrances market was valued at USD 29.15 Billion in 2022 and is expected to register a CAGR of 5.4% from CY 2023 to 2030. The key growth drivers for this market include increasing demand from application industries, such as food, beverages, perfumery, cosmetics, and toiletries, rising disposable income in emerging economies, and the busy lifestyle pattern upheld in developing and developed countries. The Asia-Pacific region dominated the global industry in FY 2022-23 and accounted for the highest share of more than 31.40% of the overall revenue. This is attributed to the shift in consumer choices towards nutritional and healthy foods and beverages in most populated countries like India and China. Multiple manufacturing companies are focussing on expanding their businesses and investments in R&D facilities in the Asia-Pacific region. Indonesia, India, China, and Vietnam are among the prominent food flavour markets in the Asia-Pacific region. Asian flavours and fragrances have also gained popularity in the major regions of Europe and North America.


Rising demand and consumption of processed food and personal care & cosmetic products globally Increasing demand for health and wellness foods, Ready-to-Eat (RTE), and convenience meals New fragrances coming into the market, from exotic to mild, are getting popular amongst the youth Expanding restaurant businesses are adopting new flavours for their food items Shift in perfume trends and increased demand for natural flavours Small and medium-sized FMCG businesses promoting the growth of local flavours and fragrances Increasing penetration of digitisation in the retail sector

Dynamic food trends, along with the rising disposable income of end-users, are pushing the adoption of luxury items Increased demand for car fragrance with the rise in the number of vehicles The global flavours and fragrances market size was valued at USD 29.15 billion in 2022 and is anticipated to register a CAGR of 5.4% from 2023 to 2030. The high penetration of Westernised eating practices and increased convenience food businesses make the Asia-Pacific region a commanding region in the global F&F market. With its emerging economies, such as China and India, the Asia-Pacific region significantly contributes to the fast-moving consumer goods (FMCG) and ready-to-eat meals markets. Herein, establishing new manufacturing units with local twists is anticipated to fuel regional growth. Additionally, the increasing per capita income, growing fast-food industry, and entry of international brands in the taste and smell sector to develop new bases for the market are projected to drive growth.


https://www.grandviewresearch.com/industry-analysis/flavors- fragrances-market#:~:text=How%20big%20is%20the%20 flavors,USD%2030.61%20billion%20in%202023.

https://www.fortunebusinessinsights.com/flavors-and-fragrances- market-102329 ; https://www.futuremarketinsights.com/reports/ flavors-and-fragrances-market


India has a rich history of using flavours and fragrances for therapeutic and aesthetic purposes. With the advent of technology, the flavour and fragrance industry in India has undergone significant changes in recent years. Today, India has one of the largest flavour and fragrance industries in the world, with abundant opportunities for new entrants.


The Indian flavour market is a key market segment that refers to additive compounds used to enhance the taste and smell of various products. Flavours can be categorised into nature-identical, artificial, and natural variants, which are extensively utilised in food and non-food applications, such as personal care products, cosmetics, pet food, and animal feed. The market size of the Indian flavour industry was 3,922 Crores in 2022 and is expected to reach 6,435 Crores by CY 2028, exhibiting a growth rate of 8.7% during CY 2023-2028.

Growth Drivers

Expanding food processing industry and demand for packaged, ready-to-eat food items and beverages Increasing utilisation of flavouring ingredients in bakery and confectionery items, ice-creams, smoothies, and energy drinks, among others Elevating levels of urbanisation and increasing penetration of numerous western food trends Growing popularity of processed and shelf-stable food products, such as noodles, soups, cake mix, RTD tea and co_ee, and juices, among others Introduction of several stringent norms by the Food Safety and Standards Authority of India (FSSAI) regarding the quality of flavours used in processed food products Increasing number of quick-service restaurants (QSRs) and the emerging caf? culture Rising consumer concerns about the negative health impact of chemical-based flavouring agents Emergence of various healthier product variants, including vegan and organic flavours, that contain 100% plant-based derivatives


Indias fragrances and perfumes market size is expected register CAGR of 22.4% between 2023 and 2029. The markets growth is being propelled by a range of factors, including an increasing demand from the millennial population, rising celebrity endorsements through social media, and a growing focus on personal grooming. In addition, an emerging trend that is expected to drive market growth is the high adoption of natural, customised, and unisex perfumes in India. Several businesses are offering their customers the opportunity to design their own signature perfumes, with some even encouraging customers to mix their own scents based on their preferences. Furthermore, the market is no longer bound by gender norms, leading to a surge in the popularity of unisex fragrances. These factors are predicted to contribute significantly to the expansion of the perfume market in India during the forecast period.

Source https://www.blueweaveconsulting.com/report/india-fragrances-and-perfumes-market

Growth Drivers

The increasing focus on personal grooming, which includes the use of fragrances, is a major driving factor for the growth of the perfume market in India Personal grooming is not only important for projecting a positive image to others but also for developing a positive self-image, enhancing confidence, and helping individuals progress in their careers Fragrances play a crucial role in the process of personal grooming, leading to increase in demand for perfumes in India Source https://www.prnewswire.com/news-releases/perfume-market-size-in-india-to-grow-by-usd-1-328-31-million-from-2022-to-2027--driven-by-the-replenishing-personal-grooming---technavio-301797120.html https://www.imarcgroup.com/india-flavors-market#:~:text=The%20 India%20flavors%20market%20was,8.7%25%20during%2 2023%2D2028


Aroma chemicals are chemical compounds that are volatile in nature and are used in the production of perfumes, flavours, and other related products. They can be derived from natural sources, such as plants and animals, or they can be synthesised in a laboratory. Aroma chemicals find their applications in various industries, including cosmetics, food & beverage, cleaning and personal care products. The global aroma chemicals market is projected to register a CAGR of 3.2% from CY 2022 to CY 2030, with a market size estimated at USD 5.2 Billion in CY 2022, and expected to reach USD 6.7 Billion by CY 2030. The markets growth is driven by various factors, including rising demand for organic and natural ingredients, growing consumer preference for non-toxic fragrances, and increasing consumption of flavours and fragrances in end-user industries.

Global Market for Aroma Chemicals (CAGR of 3.2% from 2022-2030)

USD 6.7 Billion
USD 5.2 Billion


Research and Market reports

Growth Drivers

Increasing Demand for Organic and Natural Fragrances: The demand for organic and natural fragrances is increasing due to rising consumer awareness of the harmful effects of synthetic chemicals. Aroma chemicals derived from natural sources are considered safer, healthier, and more environmentally friendly, driving the growth of the aroma chemicals market.

Growing Consumer Preference for Non-Toxic Fragrances: Consumers are increasingly choosing fragrances that are free from allergens, toxins, and harmful chemicals. The use of aroma chemicals derived from natural sources that are non-toxic and non-allergenic is growing, driving the growth of the aroma chemicals market.

Rising Consumption of Flavour & Fragrance in End-User Industries: Aroma chemicals are used in the production of various end-user products, such as cosmetics, toiletries, and food & beverage. The increasing demand for these products is driving the growth of the aroma chemicals market.

Increasing Demand for Low-Calorie Drinks: The demand for low-calorie drinks is growing due to rising health consciousness among consumers. Aroma chemicals are used in the production of low-calorie drinks, which is driving the growth of the aroma chemicals market.

Expansion of the Travel and Tourism Sector: The expansion of the travel and tourism sector is driving the growth of the aroma chemical market, as hotels, restaurants, cafes, and bars are increasingly using aroma chemicals in their products to enhance the overall experience of their customers.

Growing Investments in R&D Activities: Leading players in the aroma chemicals market are investing in research and development activities to develop innovative products with smart pricing strategies. These investments are expected to further drive the growth of the aroma chemicals market.

Source https://www.researchandmarkets.com/reports/5029852/aroma-chemicals-global-strategic-business-report?utm_code=mzrapuaz2&utm_ ss=46&utmflexec=adke277mtd https://www.imarcgroup.com/aroma-chemicals-market https://www.grandviewresearch.com/industry-analysis/aroma-chemicals-market


Camphor, a natural product extracted from the wood of camphor trees, has numerous applications due to its anti-bacterial, anti-fungal, and anti-inflammatory properties. It is a colourless and fragrant flammable compound that sublimes easily, predominantly extracted from the camphor tree, a large evergreen tree native to Asia, although it can also be synthesised from turpentine oil derived from Rosine. Synthetic camphor, derived from turpentine oil, is also available in the form of powder, tablets and blocks for various purposes. Over the years, camphor tablets have gained popularity for their medicinal properties and religious and household activities.

The global camphor market size is projected to reach around USD 500 Million by 2027, registering a CAGR of 5.5% during 2022-2027. The growing use of camphor in various applications, such as medicine, agriculture, and food, is driving market growth. Camphor tablets are widely used in the pharmaceutical industry for the treatment of cough, congestion, skin infections, and pain relief. In the Asia-Pacific region, camphor tablets are also used for religious rituals, which further boosts market growth. Camphor is used as a repellent in agriculture and household activities to keep away insects and reptiles. Additionally, the beneficial properties of camphor make it a popular ingredient in skincare and hair care products.

The global camphor tablets market is expected to reach USD 261.6 Million by 2030, clocking a CAGR of 7.6% during the forecast period 2022-2030. The pharmaceutical industry is the largest consumer of camphor tablets, followed by the agriculture and food industries. The growing demand for camphor tablets in medicine and household activities and the increasing use of camphor in skin care and hair care products are anticipated to drive market growth in the coming years.

Source https://www.businesswire.com/news/home/20230131005674/en/ The-Worldwide-Camphor-Tablets-Industry-is-Expected-to-Reach-261-Million-by-2030---ResearchAndMarkets.com


India is the second-largest importer of camphor in the world, primarily sourcing the product from China, Germany, and the United Kingdom. Natural camphor is derived from the wood of camphor trees that are mainly found in Japan, Taiwan, and Vietnam, while synthetic camphor is produced from pine trees, making it more cost-e_ective and scalable. Despite Indias ample supply of pine trees, its output only accounts for 17%, compared to 80% from imported sources. This explains the need for turpentine imports by camphor companies.

The camphor market in India is growing due to the increasing use of camphor in natural products, medical applications, religious rituals, and agriculture. Camphor is also utilised in skincare products to reduce acne and pimples. The pharmaceutical industry is a major consumer of camphor tablets, which are used to alleviate pain, swelling, congestion, and coughs. In agriculture, camphor tablets are applied as a repellent to ward off insects and reptiles. The use of camphor in religious rituals in India has also contributed to the growth of the market.

The camphor market in India is highly competitive, with numerous smaller players in the industry. Synthetic camphor, which is more affordable and widely available, has a higher demand than natural camphor, which is at least three times more expensive. The primary end-users of camphor in India are for worship, pharmaceuticals, tire, paint, flavours & fragrances, and cosmetics.

Source https://www.volza.com/p/camphor/import/import-in-india/ https://www.myinvestmentdiary.com/post/connecting-the-dots-indian-camphor-industry


With decades of experience in the flavour & fragrance, camphor, terpene chemicals, and specialty aroma chemical industry ingredient industry, Oriental Aromatics has evolved into one of the few fully integrated players in the global flavour & fragrance industry. It is one of the largest domestic manufacturers of a variety of terpene chemicals, camphor, and specialty aroma chemicals.

Creativity, passion, and innovation are at the core of the Company culture, aimed at creating differentiated solutions to enhance the consumer experience. Its product portfolio includes synthetic camphor, terpineol, pine oils, astromusk, other specialty aroma chemicals, and several other chemicals used in different industries, including flavour & fragrance, pharmaceuticals, soaps & cosmetics, and paints & varnishes, among others.

The flavours and fragrances created by the Company find application in several day-to-day products of reputed FMCG brands in different categories like fine fragrances, personal hygiene, home care, beauty, and cosmetics. Herein, it has a strong domestic presence and exports to several countries in Asia, Europe, Africa, and North and South America. Its well-established R&D centres and manufacturing facilities in India enable it to create unique combinations of specialty aroma chemicals along with flavours and fragrances. The Companys products are sold to 1,000-1,200 customers across 40 countries worldwide.


As a pioneer in Indian terpene chemistry, the Company set up the first camphor plant in India (Bareilly, UP) in 1964 with technology licenced from DuPont (USA). It has the ability to manufacture aroma ingredients from bulk to specialty grade at its manufacturing facility in Bareilly and Vadodara. Its state-of-the-art manufacturing facility at Ambernath, Maharashtra started operations in 2014, and is a very versatile manufacturing facility capable of producing flavours as well as fragrances.

The Company has achieved backward integration and established itself as a stronghold in the niche flavours and fragrance industry by foraying into the manufacturing of creative specialty aroma ingredients. It has successfully adopted an efficient and sustainable raw material sourcing policy to insulate itself from external risks.

Under the Companys integrated and fully-automated Distributed Control Systems controlled chemical manufacturing facilities, it currently manufactures over 150 specialty aroma ingredients using 28 different chemistries. These are then used in-house by the flavours and fragrances division to create winning flavours and fragrances for a wide range of applications.

R&D Facilities

Process Re-Engineering Lab in Vadodara

DSIR-approved lab

Successfully developed several new products of turpentine chemicals

Well-equipped pilot plant

Facility to carry out high-pressure reactions and various lab scale fractionating columns for separation

Centre for Innovation in Mumbai

State-of-the-art synthesis lab DSIR-approved lab

Dedicated to research on generic specialty aroma ingredients in a sustainable way Between 20-25 research associates Head-space GC-MS, Flash chromatography, UV along with regular analytical set-up Well-equipped bench scale laboratories to carry out various organic reactions like aldol condensation, oxidation, reduction, hydrogenation, hydration, acetylation, esterification, isomerisation Fully-operational environmental lab for carrying out sustainability studies


Hydrogenation Plant at Vadodara for Specialty Aroma Chemicals

~ 1,300-1,500 Million


FY 2024-25

Estimated Timeline for Completion

Capex at Mahad for Aroma Chemicals

~ 1,000-1,200 Million


FY 2023-24

Estimated Timeline for Completion of First Phase

Product Portfolio


The Companys flavours are highly sought-after among customers due to their unique characteristics that enhance the appeal of food & beverage. With a commitment to expanding the worlds expression through flavours, the Company aims to create moments of delight through delicious taste experiences. Specialising in custom flavour manufacturing, it aims to revolutionise the palate of taste, providing an unparalleled customer experience in oral hygiene, instant foods, beverages, health and wellness, dairy, and snack foods.


Withstrongpassionandcreativity,theCompany is able to create unique fragrance formulations, providing customers with a unique experience. Its in-depth knowledge, understanding of evolving customer behaviour, proximity to the market, and backward-integrated supply chain have led to high demand for its fragrances. The Company designs customised fragrances for a range of products, including fine fragrances, incense sticks, candles, soaps, shampoos, hair oils, detergents, and other FMCG products, providing its clients with a unique brand identity. Its superior-quality fine fragrance blends are widely popular among the finest perfumes, personal care, and home care brands.

Specialty Aroma Chemicals

High-quality aroma chemicals are essential components in the creation of flavour and fragrance. These building blocks are crucial to the development of innovative and sustainable F&F formulations. Aroma chemicals can be utilised to mask, mimic, or enhance a particular taste or scent. Each aroma possesses a unique characteristic and specific need, making it stand out regardless of its final application. As a leader in manufacturing specialty aroma chemicals in India, the Company offers a vast array of molecules and ingredients for both captive consumption and global exports. Each aroma molecule can be customised to suit a variety of products and provide a unique fragrance. The Companys extensive and continually expanding range, covering the entire olfactive spectrum, caters to a diverse range of products with varying technical specifications. All synthetic aroma ingredients are produced in-house, utilising the Companys research and manufacturing facilities.


The Company is a leading manufacturer of synthetic camphor in India, providing a versatile product with anti-microbial and anti-inflammatory properties. Camphor is used for its medicinal benefits and in spiritual and embalming ceremonies across Asia. As per ancient Indian culture, camphor is highly valued for purifying the air during religious ceremonies. In addition to its purifying properties, camphor is commonly used to treat skin conditions, improve respiratory function, and relieve pain due to its anti-bacterial, anti-fungal, and anti-inflammatory properties. The Companys expertise in synthetic camphor manufacturing has made it one of the largest manufacturers of camphor in India.

Discussion on Financial Performance with Respect to Operational Performance

During the year under review, the Companys consolidated total revenue has decreased from 86,879.19 Lakh in 2021-22 to 84,907.26 Lakh in 2022-23. Profit after tax decreased by 3,355.94 lakh from 5,330.23 lakh to 1,974.29 lakh. The aforesaid decrease in profitability is mainly due to an increase in raw material prices. For standalone performance and consolidated performance, the members may refer to the Boards report.

Details of Significant Changes

Details of significant changes (i.e. change of 25% or more as compared to the immediately previous financial year) in key financial ratios, along with detailed explanations are given below:

Particulars FY 2022- 23 FY 2021- 22 YOY Change (in %) Reason for Change
Interest Coverage Ratio 4.20 22.78 (81.56%) Increased utilisation of borrowing during the year and reduction in profit.
Current Ratio 2.13 2.98 (28.64%) Due to increase in inventory.
Debt-Equity Ratio 0.37 0.23 58.83% Increased utilisation of borrowing during the year and reduction in profit.
Operating Profit Margin (%) 6.49% 10.76% (39.62%) Due to increase in prices of all input costs and reduction in sales realisations.
Net Profit Margin (%) or sector - specific equivalent ratios, as applicable. 2.43% 6.22% (60.96%) Due to increase in prices of all input costs and reduction in sales realisations.

Details of any change in Return on Net Worth as compared to the immediately previous financial year along with a detailed explanation thereof:

Particulars FY 2022- 23 FY 2021- 22 YOY Change Reason for Change
Return on Net Worth 3.56% 9.68% 63.20% Due to reduction in profit during the year

Management Outlook

Oriental Aromatics has carved a niche for itself in the global market as one of the most prominent fully-integrated manufacturers of flavour & fragrance, and aroma chemicals. The Companys unwavering commitment to innovation has been instrumental in its success, enabling it to develop tailor-made products that embody the essence of its clients brands and visions.

With a focus on cultivating long-lasting relationships with its clients, Oriental Aromatics aims to continue providing high-quality products that meet the evolving needs of its customers. The Companys vision is to become a global leader in the specialty aroma chemical space, with a particular focus on high value, low-volume products. To achieve this, Oriental Aromatics is investing heavily in R&D and emphasising on backward and forward integration.

At the core of its success are its skilled and driven top management team and its dedicated employees. The Companys state-of-the-art automated multi-purpose plants in India for specialty aroma chemicals reinforce its position as a leader in the industry. Moreover, the Company is poised to expand its global reach and strengthen its position in the industry by exploring new ways to enhance its product offerings, improve its processes, and develop innovative solutions. All of this, while integrating sustainability and ensuring environmental compliance to minimise the business impact on the environment.


Flavour and fragrance play a crucial role in the buying decisions of various FMCG categories, including home and personal care, and food & beverage, among others. India has an abundant supply of skilled labour, raw materials, and low-cost production, presenting a huge opportunity for the country to become the global hub for chemicals. The current per capita consumption of chemicals in India is low compared to the global average, making it an attractive market with a large population base, increasing per capita income, and rising demand from end-user industries. The increased demand for personal care and home care products, providing a significant growth opportunity in the fragrance market. Furthermore, digitalisation offers competitive advantages for chemical companies through improved horizontal and vertical integration, operations management, innovation, and new digital business models. Chemical companies are implementing digitalisation initiatives and tools in their supply chains, demand planning, and pricing strategies.


Despite the significant opportunities, certain factors pose a risk to growth. Continued conflict and geopolitical tensions, rising crude oil prices, domestic inflationary pressure and disruptions in the global supply chain are all potential threats to growth.

Despite these risks, Oriental Aromatics is in a prime position to capitalise on the opportunities presented by the sector. Successful forward integration has solidified its position in the flavour & fragrance market and aroma chemicals space. The merger has not only enhanced its product portfolio, but also its marketing strengths.

Risk Management

Macroeconomic risk
The macroeconomic environment has become more volatile and uncertain due to externalities, such as geopolitical tensions and rising crude oil prices, inflation, supply chain disruptions resulting in disrupted supply chains and increased prices of commodities. Further, inflationary pressures can exacerbate this impact, lowering demand across the consumer-segment industry. Mitigation
Multiple sourcing models, a wide geographical spread, an extensive sourcing and supply chain network coupled with associated infrastructure in key growing areas ensure the sourcing of high- quality raw materials at competitive costs. Indias emergence as a global manufacturing hub is going to result in an increase in demand for the consumer-segment industry. The essential part of consumer goods demand remains unaffected by any economic slowdown, keeping demand for the Companys products intact.
Competition risk
The widespread applications and high growth prospects of the industry create competitive pressures in India as well as globally. Rapidly and constantly evolving consumer demands require the Company to keep pace with appropriate innovations and keep competition at bay. Mitigation
The Companys in-depth understanding of the tastes and preferences of Indian consumers makes it a preferred choice for most of the FMCG companies, providing a competitive edge against industry concentration. The Company is well- prepared to move into bigger markets with its value-added products.
Raw material risk
Fluctuations in raw material prices or disruptions in the supply chain can lead to a significant increase in operational costs and a delay in production. Mitigation
A value-based, research-driven philosophy along with a dedicated and efficient team of scientists focussed on new technologies and innovation enable the Companys to continually build on its competitive edge. The Companys integrated operations, right from product conceptualisation with clients to manufacturing aroma ingredients and flavour & fragrance provide it with better control across value chain. This is supported by its professional teams deep expertise in this field, enabling it to quickly meet clients needs at a low cost.
Forex risks
The extended global presence of the Company in 33+ countries, increases financial risk to business in the event of sharp cross-currency fluctuations. Since the Company is a net importer across all its areas of operations, it is exposed to these risks, which can impact the cost of its imports and ultimately, its profitability. Mitigation
The Company is a net-importer, and since there is no material difference between foreign exchange earning & outgo, the net impact on the Companys financials is minimal, thus the foreign exchange risks are minimal.

Please refer to the Boards Report in this Annual Report for further details.

Internal Control and its Adequacy

Oriental Aromatics has implemented a comprehensive internal control system, tailored to its size and business operations. It aims to ensure accurate, reliable, and prompt financial reporting, while safeguarding its assets and interests, adhering to applicable laws and regulations, and integrating risk management. The system includes well-documented policies, guidelines, and procedures for authorisation and approval, and periodical audits are conducted by both internal and external auditors to identify any deficiencies or areas for improvement. The Audit Committee of the Board of Directors reviews the audit plans, observations, and recommendations of the auditors to ensure appropriate actions are taken in response to any risks to the business, maintaining the adequacy of internal controls without compromising its integrity.

Human Capital

Human Capital is an integral part of the growth of Oriental Aromatics and the Company strives to attract, retain, and recognise human talent. The Company provides a safe, conducive, collaborative, fair, and healthy work environment. The Company believes in hiring the right talent, managing workforces effectively, and encouraging fresh minds and new ideas, leading to employee motivation and a culture of innovation.

Ethical Behaviour

Several programmes and initiatives are undertaken to inculcate a strong sense of business ethics and social responsibility in employees at all levels. This helps build a culture of transparency, integrity, and accountability.

Inclusivity and Diversity

The Company values diversity and provides equal opportunities for all its employees. It believes in creating a workplace that is inclusive and where employees feel valued and respected, irrespective of their gender, age, race, religion, or sexual orientation. Our diversity philosophy celebrates the common values that bring joy, happiness, energy, and enthusiasm to the employees and focusses on bridging differences by enhancing commonalities among the diverse work pool.

Employee Motivation

The Company also believes in employee motivation and career growth. It facilitates career growth and encourages employees across the organisation to enhance their knowledge and skills. The Company provides various training programmes and initiatives to help employees upskill and improve their performance.

The total number of permanent employees in the Company was 714 as of 31st March, 2023. The industrial relations in the Companys manufacturing units continued to be cordial throughout the year. The Company recognises the importance of employee welfare and provides various benefits to ensure their well-being.

Environment, Health and Safety

The Company strongly emphasises environmental sustainability in its business operations, striving to conserve natural resources and protect the ecology by minimising pollution and water usage. Waste management systems are in place at all facilities, ensuring responsible waste handling in harmony with the surrounding ecosystem. In the area of occupational health and management, Oriental Aromatics has received ISO 45001:2018 for Occupational Health and Safety Management System, and, ISO 14001:2015 for Environmental Management System, ISO 9001:2015 for Quality Management System for all its plants.

Water usage during manufacturing and other plant activities is managed through reuse, recycle, and reduce policies, promoting efficient usage of this precious resource. Moreover, the Company has installed pollution control facilities at both its plants in line with the guidelines of the pollution control authority and set norms. To ensure the safety of its workforce, the Company provides adequate safety equipment and conducts periodic training.

Cautionary Statement

The Management Discussion and Analysis section of this document includes forward-looking statements regarding the Companys future expectations and projects related to growth strategy, product development, market position, expenses, and financial results. These statements are based on certain assumptions and expectations, but the Company cannot guarantee their accuracy or realisation. Factors such as economic conditions, Government regulations, tax laws, and incidental factors may impact the Companys operations. The Company takes caution to identify and mitigate any potential risks and uncertainties that could affect its performance.