The rising disposable income and the accessibility to social media has forced Indians to spend more on perfume. Banking on this trend is Delhi-based B2B (business-to-business) company Delta Exports. Following a success with its export venture the company’s fragrance maker increased its sales up in 2010 with its focus on the B2C sector in India through brands like The Fragrance People (TFP).
TFP produces and sells a variety of fragrance products, including 150 SKUs of categories like oil incense, candles roll-ons, candles, and much more. TFP has also introduced an anti-viral collection, as well as anti-pollution products like re diffusers, candles and essential oils to expand its range.
According to Delta, the anti-pollution blend of oils contains 18 purifying essential oils that have the properties of cleansing and antimicrobial. The oils, Delta says, clean the air and act to purify the air naturally. They were first introduced in the year 2010.
The Indian market for fragrances is projected to reach 13 billion as of 2024, which is an annual compound growth amount that is 15.9 percent. India is home to a myriad of brands like Forest Essentials, Good Earth, Beauty MNL, and many more, as per an analysis by ResearchandMarket.
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Interview Deepak and Arti Jain Directors from Delta unravel the brand’s story and explain how the category of diffusers has become its most popular and more.
The year was 1991. CL Jain, managing a real estate firm was living in America. US when he observed the need for Indian products, particularly hand-crafted products. But, the majority of these items were not of good quality.
Something ignited within him, and he made the decision to take certain orders from the American customers, his son, Deepak remembers.
He started buying items such as incense sticks, candles and other items from Indian producers, performed the required quality checks and then shipped these products into the US. This set the stage for Delta Exports International, which currently has a turnover of more than 45 crore. In 2000, as Delta was generating the equivalent of Rs 11 crore per year and was able to make a decision to establish an manufacturing facility in Chattarpur close to Delhi.
The year 2001 was the first time CL Jain was joined in 2001 by the son of his, Deepak Jain. Then Deepak’s wife Arti joined the company too.
Delta Directly or in indirect ways, sells to nearly all countries in the world. The most important markets comprise that of US, Europe, and the Middle East.
The company has a variety of product categories that cater to different segments. For instance, it offers an assortment called the Jaipur range , which is a rustic collection that offers many scents, and is the names Bodhi, Indigo, Mastani and many more.
Similar to the Spell Collection includes fragrance products that aid in soothing and relaxing. The brand also offers an Apothecary collection that, the company saysis very well-known in its European market. This collection is designed to honor the oldest traditional aromas.
As per Arti and Deepak that they primarily focused on the most common scents before they started their business. After launching fragrances like vanilla, lemongrass jasmine, and lavender they began to explore different scents. They hired a perfumer or an expert to help the team in creating the distinctive blends.
It is precisely this that makes TFP’s products distinct, says Deepak and adds that these scents aren’t found elsewhere.
The price of selling candle diffusers and candles are between Rs 799 and 1,450.
Products made by hand
The entire range is made in the company’s manufacturing facility close to Chattarpur within Delhi. It is noteworthy that even though the technology is moving toward automated manufacturing, Delta wants to focus more on handmade products and is planning to add more clay pots when packaging the items.
Delta states that TFP and in particular its reed diffusers is an important factor in the company’s success up to 60% of its revenuecoming from this sector.
The company’s merchandise is available offline in six brands-owned stores in addition to its website. As of now, 25 percent of its revenue comes through online purchases.
Deepak claims that the introduction of new brands has allowed the company to expand its reach since working for other brands usually has its limitations.
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Deepak is also adamant that Delta is able to remain relevant in both the domestic and international market due to a variety of factors including staying on top of trends and focusing on quality packaging and competitive pricing, as well as complying with all safety regulations,among others.
The company has a number of five-star hotels, as well as giants such as Walmart, Landmark Group from UAE, Armani Home, as customers. The company’s diverse customer base was also helpful in dealing with problems such as COVID-19.
When there was a shortage of demand in the US and we witnessed an increase in demand from countries such as Middle East. Middle East, Deepak adds.
For FY21 Delta Exports saw Rs 49 crore in profits in FY22. In FY21 the company earned the figure of Rs 45 crore. The loss of 4 crore resulted from one of the customers becoming into bankruptcy at the UK.
In the future, Deepak says Delta is focused on changing the way that digital technology is used in its B2B business. Delta is planning to launch soon the website to help customers from around the world take a look at their offerings online. “Online is a huge possibility,” says Arti.
For TFP itself, the median value of an order (of sales on the internet) is 2,405 rupees and the company’s revenues are growing by 124 percent per month.