Perfumes and Fragrances

Perfume Compositions intended to impart a pleasant odor, scent or aroma, processes of making or using a perfume composition. Broad terms such as "perfume" or "perfume oil" stated to be ingredients in cosmetics.

Perfume compositions usually include an active ingredient or enhancer and one or more adjuvant (extenders, antioxidants, fixatives). Subclasses 2 and 3 are based on the active or enhancing organoleptic ingredient. An active ingredient is a compound which imparts the aroma to the perfume compositions or enhances or augments the aroma of an existing perfume composition. Fixatives and extenders are not considered to be active ingredients; a fixative slow down the rate of evaporation of a perfume by reducing the volatility, and an extender increases the volume of the perfume composition without diluting the aroma.

Nature of fragrances in perfumes

·         Citrus

·         Floral

·         Fruity

·         Green

·         Oceanic

·         Oriental

·         Spicy

·         Woody

Major chemicals in perfumes

 

·         Acetone

·         Benzaldehyde

·         Benzyl acetate

·         Benzyl alcohol

·         Camphor

·         Ethanol

·         Ethyl acetate

·         Limonene

·         Linalool

·         Methylene chloride

·         a-pinene

·         g-terpinene

·         a-terpineol

 

 

Where perfumes are used?

Perfumes are used in cosmetic, household items and luxury products. Products can be:

·         Detergents

·         Shampoos

·         Soaps

·         Skin care

Natural ingredients in perfumes

 

·         Flowers

·         Grasses

·         Spices

·         Fruit

·         Wood

·         Roots

·         Resins

·         Balsams

·         Leaves

·         Gums

·         Animal Secretions.

Factors affecting perfume

·         Heat

·         Light

·         Oxygen

·         Extraneous organic material

Market structure

The market for perfumes and fragrances, as perceived in western parlance, is of a recent origin. The demand in India has existed for ages for traditional ittars which have been fading out except for ceremonial occasions and with old connoisseurs. The old redolences are being overtaken by eau de colognes and western perfumes while the former have been consigned to a few elitist households only. In the wake of the economic reform policies and freer imports, the market is developing a global perspective.

Presently there are some 500 companies in the fragrance industry. The small scale sector is dominating the market. The unorganised market could be four times the size (by volume) of the organized market. From a very small demand of 950 tonne in 1990-91, it expanded to 12,500 tonne in 2000-01. The market for the product is estimated to have expanded by over 50% in three years to 18,300 tonne in 2003-04, and further to 26,650 tonne in 2006-07 and to over 30,000 tonne in the following year. It is expected to increase to 36,400 tonne in 2009-10.

Hindustan Unilever had hived off its flavours, fragrances and food ingredients business into a joint venture with the ICI group, although it kept its option open on the exiting the Rs 3 bn with venture.

Revlon has revived its ageing brand, Charlie, with a new version of perfume. The launch underscored that the market for Charlie in the UK is still very much alive. Archies Greetings and Gifts, with a wide range of greetings and gifts Zeroone a range of grooming accessories - perfumes, de-odorants, after-shave and talcum powder in male and female variants - was also earlier unveiled by Archies. Archies' perfume division set up a strong distribution and retail network of 475 stores across the country to push its scents.

Christian Dior Perfumes, one of the biggest fashion brands in the world (owned by the Louis-Vuitton-Moet-Hennessy group), entered the Indian market with its premium range of fragrances, skin care and make-up products. It launched it Higher Dior, the eau de toilet for men. The direct competition to it comes from Estelle Lauder, Chanel and Lancome. 

Reckitt Benckiser has launched its global air freshner brand Air Wick with a choice of fragrances in three formats - electrical diffuser, aerosol spray and freshmatic automatic spray. The fragrances available include English Rose, Peachy Jasmine and lavender fields. The Air Wick Electrical Diffuser started with an introductory price of Rs 125, while. Aerosol spray was launced at Rs 700. 

Lotus Innovations had introduced six Paris Bleau perfume brands in the country including Red Pearl, Zandarela, Dorien, Sawsan, Malena and Augustine. Priced between Rs 1500 and Rs 2500, the premium perfume range faced stiff competition in the market from brands like Baccarose, Christian Dior and Nina Ricci.

MKP Distributors imports several premium foreign brands such as Gucci and Hugo Boss. MKP has also been contracting to manufacture perfumes for companies like Avon, Revlon and Mayer India. At its factory in Bahadurgarh in Haryana, it produces and exports 100,000 perfume bottles a month to the Gulf, the Russia and the US market. It has developed its own brands such as Tycoon, Aqua and Serum for the export market that sell between USD 4 and 6 a bottle.

The market is growing. It is catching up with the nouveau rich lifestyle. A long-term high growth trend can be seen provided the consumer finds the product in conformity with his preferences and within the reach of his pocket.

 

 

How Niir Project Consultancy Services (NPCS) can be helpful:-

 

NPCS can provide project consultancy services to any budding entrepreneur, who wants to get knowledge on manufacturing of perfumes and fragrances. Consultancy can provide the complete report covering topics like Plant Economics, Production Schedule, Land & Building, Site Development Expenses, and Working Capital Requirement etc.

NPCS Project Consultancy Services helps in establishing business prospective in manufacturing of perfumes and fragrances. Detailed project report can be modified as per requirement of cost and capacity of the project. Our consultancy has a state-of-the-art experience in preparing projects report on different subjects as per need.

 

Detailed project report contains:

 

·         Introduction

·         Properties

·         BIS (Bureau of Indian Standard) Specifications & Requirements

·         Uses & Applications

·         Present Indian Market Position

·         Expected Future Demand

·         Export & Import Statistics Data

·         Names and Addresses of Existing Units (Present Manufactures)

·         List of Plant & Machineries

·         Miscellaneous Items and Accessories

·         Instruments, Laboratory Equipments and Accessories

·         Electrification, Electric Load and Water

·         Maintenance, Suppliers/Manufacturers of Plant and Machineries

·         Process of Manufacture

·         Flow Sheet Diagram

·         List of Raw Materials

·         Availability of Raw Materials

·         Requirement of Staff & Labour

·         Personnel Management

·         Skilled & Unskilled Labour

·         Requirement of Land Area

·         Built up Area

·         Plant Layout.

         

Along with financial details as under:

•        Assumptions for Profitability workings

•        Plant Economics

•        Production Schedule

•        Land & Building

Factory Land & Building

Site Development Expenses

 

•        Plant & Machinery

Indigenous Machineries

Other Machineries (Miscellaneous, Laboratory etc.)

 

•        Other Fixed Assets

Furniture & Fixtures

Pre-operative and Preliminary Expenses

Technical Knowhow

Provision of Contingencies

 

•        Working Capital Requirement Per Month

Raw Material

Packing Material

Lab & ETP Chemical Cost

Consumable Store

 

•        Overheads Required Per Month And Per Annum

Utilities & Overheads (Power, Water and Fuel Expenses etc.)

Royalty and Other Charges

Selling and Distribution Expenses

 

•        Salary and Wages

•        Turnover Per Annum

•        Share Capital

 

Equity Capital

Preference Share Capital

 

•        Annexure 1          ::        Cost of Project and Means of Finance

•        Annexure 2          ::        Profitability and Net Cash Accruals

Revenue/Income/Realization

Expenses/Cost of Products/Services/Items

Gross Profit

Financial Charges    

Total Cost of Sales

Net Profit After Taxes

Net Cash Accruals

 

•        Annexure 3                    ::        Assessment of Working Capital requirements

Current Assets

Gross Working. Capital

Current Liabilities

Net Working Capital

Working Note for Calculation of Work-in-process

 

•        Annexure 4                    ::        Sources and Disposition of Funds

•        Annexure 5                    ::        Projected Balance Sheets

ROI (Average of Fixed Assets)

RONW (Average of Share Capital)

ROI (Average of Total Assets)

 

•        Annexure 6                    ::        Profitability ratios

D.S.C.R

Earnings Per Share (EPS)

Debt Equity Ratio

 

•        Annexure 7                    ::        Break-Even Analysis

Variable Cost & Expenses

Semi-Var./Semi-Fixed Exp.

Profit Volume Ratio (PVR)

Fixed Expenses / Cost 

B.E.P

 

•        Annexure 8 to 11 ::        Sensitivity Analysis-Price/Volume

Resultant N.P.B.T

Resultant D.S.C.R

Resultant PV Ratio

Resultant DER

Resultant ROI

Resultant BEP

 

•        Annexure 12        ::        Shareholding Pattern and Stake Status

Equity Capital

Preference Share Capital

 

•        Annexure 13        ::        Quantitative Details-Output/Sales/Stocks

Determined Capacity P.A of Products/Services

Achievable Efficiency/Yield % of Products/Services/Items 

Net Usable Load/Capacity of Products/Services/Items   

Expected Sales/ Revenue/ Income of Products/ Services/ Items   

 

•        Annexure 14        ::        Product wise domestic Sales Realization

•        Annexure 15        ::        Total Raw Material Cost

•        Annexure 16        ::        Raw Material Cost per unit

•        Annexure 17        ::        Total Lab & ETP Chemical Cost

•        Annexure 18        ::        Consumables, Store etc.,

•        Annexure 19        ::        Packing Material Cost

•        Annexure 20        ::        Packing Material Cost Per Unit

•        Annexure 21        ::        Employees Expenses

•        Annexure 22        ::        Fuel Expenses

•        Annexure 23        ::        Power/Electricity Expenses

•        Annexure 24        ::        Royalty & Other Charges

•        Annexure 25        ::        Repairs & Maintenance Exp.

•        Annexure 26        ::        Other Mfg. Expenses

•        Annexure 27        ::        Administration Expenses

•        Annexure 28        ::        Selling Expenses

•        Annexure 29        ::        Depreciation Charges – as per Books (Total)

•        Annexure 30        ::        Depreciation Charges – as per Books (P & M)

•        Annexure 31        ::        Depreciation Charges - As per IT Act WDV (Total)

•        Annexure 32        ::        Depreciation Charges - As per IT Act WDV (P & M)

•        Annexure 33        ::        Interest and Repayment - Term Loans

•        Annexure 34        ::        Tax on Profits

•        Annexure 35        ::        Projected Pay-Back Period And IRR

 

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