Borregaard established a representative office in the city of Mumbai in 1999. The office now has three employees working to promote sales of vanillin and lignin products, and of diphenol products from Borregaard Italy. Prior to this, sales to India were handled through agents.
"One of our most important functions is to bring Borregaard closer to its customers and increase our own understanding and knowledge of this large market," says Anand Chatorikar, head of the Mumbai office.
Sales of Borregaard products in India have risen since the office was established. This year, Borregaard expects turnover in India to total some NOK 50 million.
Vanillin in incense
Since the office was established, Borregaard's share of the vanillin market in India has increased substantially.
"As well as being used in food products, vanillin is now sold in incense sticks, which are used a lot here. Vanillin is also used as a flavouring in tea," relates Mr Chatorikar.
The most important areas of use for lignin products are as additives in concrete and agrochemicals. The total lignin market in India is not very large today, but Mr Chatorikar believes it may expand considerably in the longer term.
"Particularly in the case of concrete additives, we hope to be able to increase the market because construction activity is at a very high level all over the country. We are currently planning a special seminar for delegates from the construction industry in order to focus on how lignin can be used as an additive in concrete," says Mr Chatorikar.
Strong industry
India has a comprehensive chemicals industry and a large number of fine chemicals companies. Borregaard has already acquired an interest in one of them, Suven Pharmaceuticals in Hyderabad, southern India. Borregaard has been working with Suven for several years, and the company has manufactured various products for Borregaard.
"India will be an increasingly larger and more important player in the fine chemicals sector. This will open up more opportunities for Borregaard in the fields of production, research and development," says the head of Borregaard's office in India.
Mr Chatorikar points out that the Indian fine chemicals industry has a high level of expertise, low costs and high productivity.