Bangalore, July 15: Givaudan-Roure, the flavour and fragrance division of the 16-billion Swiss franc Roche group, is planning to expand its Indian operations. The company, which initiated its local operations with the fragrance business, now intends to make a foray into flavours. "We have already set up the flavour division and are looking at setting up a manufacturing base for the same," Givaudan-Roure managing director (India) Ajit Pal said. The division has begun prospecting for business.

The fragrance division will prepare unique flavours targeted at the bakery, dairy, liquor, ice-cream and soft drinks industries. Promising to usher in international standards in the domestic food industry, Pal says, "Our contribution is restricted to creating the unique flavour idea."

With most raw materials imported, the `punitive' duty structure is proving to be the main challenge in gaining market leadership. Because of low volumes, it does not make economic sense to set up manufacturing bases wherever we operate," explains Pal.

The company specialises in creating unique fragrance ideas or aroma chemicals, mainly for the soaps industry. Given the estimated industry size of Rs 600 crore, detergents, cosmetics and toiletries, tobacco, fine perfumes, shampoo are the other targets.

The world leader in $12-billion fragrance industry, the company began manufacturing with the acquisition of Bangalore-based company Vinarom. Agarbati sector was excluded because of its unorganised nature.

The company's unique selling proposition, apart from creativity are its in-built safety standards. "Advent of such companies will spread awareness about products like musk ambrett which although used in India is a known carcinogenic," said an industry expert. Given that fragrance is reserved for the small scale sector, safety norms have become the casualty. Pal refused to name Indian clients because his company is unwilling to take the credit for their brands. He, however, admits to Poison, Opium and Obsession as the notable works.

After flagging off its Indian operations in 1992, the company set up a fully-owned subsidiary in the country during the last quarter of 1994. A division of the Geneva-based Roche group, the company with a turnover of $1.5 billion, was formed with the merger of Geneva-based Givaudan and French company Roure.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.