Novel approach at Fine Aromatics a win-win for all
It may only have been a year since Fine Aromatics launched, but the essential oil company’s roots go back 60 years.
The Christchurch based business owned by Indian company TMV, which has been producing essential oils and herbal extracts for the last six decades.
TMV is one of India’s oldest essential oils and extracts manufacturers and has a production capacity of 60 MT for each product and storage capacity of 1000MT.
Furthermore, Fine Aromatics recently formed a sole distributor relationship with French company MPE, which is located in the world’s fragrance capital, Grasse. The company, founded in 1982, sources raw ingredients from France, Southern Italy, Egypt, Morocco, Tunisia and the Dominican Republic. Its products supplied to Fine Aromatics include super-premium essential oils and absolutes.
Fine Aromatics Managing Director Vivek Nair says he has built up a predominantly wholesale customer base in New Zealand but plans to export to Australia in time. His customers typically use the oils for aromatherapy blends, soaps, candles and cosmetics.
Both TMV and MPE source raw materials directly from growers and distil products themselves, before supplying Fine Aromatics directly, thus cutting out the middlemen.
This not only helps keep prices down but provides a safeguard that products won’t be adulterated in the supply chain. Both companies buy direct from growers and distil the oils in their own high tech, strictly quality controlled facilities.
Another point of difference – the ability to hedge rates – fits well with Vivek’s previous career as a banker.
His innovation enables Fine Aromatics’ customers to lock in a set rate for the year, thus hedging against price fluctuations. For example, France’s lavender yield was very good this year so customers being able to lock in a set rate for the year meant growers got a fair price despite high yields, and customers enjoyed certainty of supply and budgets.
It’s a win-win for all.