After a successful global outing, Delta Exports is making waves in the Indian market with its reed diffusers
Rising disposable incomes coupled with access to social media have nudged Indians to splurge on perfumes. Banking on this trend is Delhi-based B2B (business-to-business) company Delta Exports. After a successful export venture, the fragrance manufacturer took its business a notch higher in 2010 with a focus on the B2C market in India via brands such as The Fragrance People (TFP).
TFP manufactures and sells various fragrance products, offering 150 SKUs across categories such as incense sticks, essential oils, candles, roll-ons, and more. It has also added an anti-viral and anti-pollution collection—reed diffusers, candles, and essential oils—to expand its offerings.
According to the company, the anti-pollution oil blend contains 18 purifying essential oils with antimicrobial and cleansing properties. The products, Delta says, clean the air and function as natural air purifiers. These items were introduced after 2010.
The Indian fragrance products industry is slated to reach Rs 139 billion by 2024, registering a compound annual growth rate of 15.9 percent. India houses numerous brands such as Forest Essentials, Good Earth, Beauty MNL, and more, according to a report by ResearchandMarkets.
In an interview with SMBStory, Deepak and Arti Jain, Directors at Delta decode the brand, how the diffusers category became its bestseller and more.
It was the year 1991. CL Jain, who was running a real estate business, was in the US when he saw the demand for Indian products, especially hand-made ones. However, a majority of these products were of poor quality.
“Something spurred within him and he decided to take some orders from some of the American buyers,” his son, Deepak, recalls.
He began buying products like candles, incense sticks, etc from Indian manufacturers, carried out the necessary quality checks, and exported them to the US. This laid the foundation of Delta Exports International, which today has a turnover of more than Rs 45 crore. In 2000, when Delta was clocking Rs 11 crore annually, it decided to open a manufacturing unit in Chattarpur near Delhi.
In 2001, CL Jain was joined by his son, Deepak Jain. Later, Deepak's wife Arti also joined the business.
Delta, directly or indirectly, exports to almost all the countries of the world. Its top markets are the US, Europe, and the Middle East.
The business has several product categories catering to different segments. For instance, it has a collection called Jaipur range which is a rustic category offering myriad scents and even named Bodhi, Indigo, Mastani, etc.
Similarly, the Spell Collection consists of fragrance items that help in soothing and relaxing. The brand also has an Apothecary collection, which the company says, is popular in the European market. This collection caters to ancient aromatic traditions.
According to Arti and Deepak, they focussed on common scents when they entered the business. After launching products in scents like lemongrass, vanilla, jasmine, and lavender, they started experimenting with different blends. They even hired a perfumer or an expert who helps them develop these unique blends.
This is what makes TFP’s offerings unique, says Deepak, adding that these scents are not found anywhere else.
However, the anti-viral and anti-pollution collection is their USP. Another product that has caught the attention of the masses is Citronella oil. “It is a natural anti-mosquito repellant which can help repel unwanted bugs naturally. It has a rich and crisp citrus aroma.”
The average selling price for the candles and reed diffusers is between Rs 799 and Rs 1,450, respectively.
All the products are made in the company manufacturing unit near Chattarpur in Delhi. What’s notable is that while the world is moving towards automation, Delta wants to focus more on hand-made products and plans to include more clay pots while packaging the products.
Delta says TFP, and specifically, its reed diffusers, is a major contributor to its business, with as much as 60 percent of the revenues coming from this segment.
The company’s products are present offline in six brand-owned outlets as well as on its website. At the moment, 25 percent of its revenues come from online sales.
Deepak says that launching new brands has helped the company expand its horizons as working for other brands often comes with restrictions.
“When we are making something for someone else, our hands are tied.” Apart from TFP, Delta has several brands such as Arveda, Earth Scents, Natural Spa, etc.
Deepak also says that Delta has been able to stay relevant in the international and domestic market due to several reasons such as keeping up with trends, focussing on quality, packaging, competitive pricing, conforming to all safety regulations, among others.
The company counts several five-star hotels as well as giants like Walmart, Landmark Group from UAE, Armani Home, as its clients. Having a diverse customer base also helped in riding over crises like COVID-19.
“When the demand was low in the US, we saw a huge uptick in demand from regions like the Middle East,” Deepak says.
In FY21, Delta Exports saw Rs 49 crore in revenues, and in FY22, it clocked Rs 45 crore. The Rs 4 crore loss was due to one of the customers going bankrupt in the UK.
Going forward, Deepak says Delta is focussed on the digital transformation of the B2B business. The brand is planning to soon launch a website that will help international customers take a look at their products online. “Online is a massive opportunity,” says Arti.
For TFP itself, the average order value (of online sales) is Rs 2,405 and its revenues are increasing at a rate of 124 percent month-on-month.