The rising consumer interest in herbal and natural seems to be the theme of cosmetics sector in India and abroad today. Consumers from all walks of life want to look good but without using chemicals, mentions K Shyam Prasad, Founder & President, Vidya Herbs, a leading manufacturer of plant extracts and essential oils. In an interview to Cosmedic India, Prasad offers wide-ranging perspectives on the state of the market and the strategy employed by his company to stay ahead of the competition. Excerpts of the interview:
What is Vidya Herbs’ business focus?
As our company name indicates, our focus is on herbal extracts—one-hundred percent natural and standardised. Our emphasis is on quality of ingredients from their efficacy point of view. The products we make are scientifically proven in terms of their quality and capabilities. We have a full-fledged research and development (R&D) centre with in-vitro labs, saline labs, and so on.
Which segments within cosmetics will drive demand in India and the rest of the world?
Largely, most of the areas within cosmetic sector have been exhibiting a good growth. My estimate is that skin care products, especially the anti-wrinkle and anti-ageing products, will drive demand for cosmetics in the near future.
How is your company taking advantage of these trends?
At Vidya Herbs, we believe in two things: 1) Beauty from within and 2) 100% natural. Our entire business is founded on these philosophies. For instance, our product Konjac is in line with our Beauty from within philosophy. A product developed and manufactured by us in Japan, Konjac is a popular panacea for skin health. It is used in treating a variety skin conditions such as wrinkles and fine lines, loss of skin tone, and hyperpigmentation by consumers worldwide. Similarly, every product we make is 100 percent natural. Be it making active ingredients or otherwise, our emphasis lies on 100 percent natural.
Are you doing any new research in these areas?
At present, our patented product Konjac is produced (and consumed) in the form of tablets. We are doing clinical research on this product to assess whether it may be produced in the form of a topical, external application for human skin. There is a growing consumer interest and need in the US market for serums and ointments for skin health. Our research is directed at bringing out new brand extensions of Konjac to address this need.
In addition, we are also doing collaborative research with international food industry players to use Konjac as an ingredient in their food products such as candies, chocolates, or toffies. The idea is that you can enjoy your candy while Konjac does its job of maintaining your skin health—silently.
What do you see as the top trends in various segments of cosmetics? What is your company’s strategy in those areas?
There has been a rising consumer demand for natural and organic globally. Customers have experienced the ill-effects of chemicals on their body. Therefore, they want nothing but natural. As a company we too stand by our philosophy of providing 100 percent natural to our customers. The nature has a bountiful of molecules that can act as active ingredients. India’s vast bio-diversity is an advantage for the companies here. Knowledge of Ayurveda is another boon for the Indian companies.
High-quality products that are scientifically tested and proven form as the strength of our business. Only when our product is of high quality, we can guarantee about its efficacy confidently. Quality mandates that we invest heavily in science and technology. Customers should rely on our brand name and recognise us as manufacturers of high quality products. When we market our products globally, we also represent the India brand. It is not only our reputation but also the reputation of India which is at stake.
As a company, our orientation is sophistication of extraction methods. The product we manufacture must be of zero defects and devoid of any bacteria. We need to always look for the best extraction methods and technology tools available. A lot of modernisation effort goes into making our factories world-class.
That’s why we have been investing in advanced technologies such as Supercritical Fluid Extraction (SFE). With SFE technology, we are able to produce high grade herbal extracts and oils with high A-‘flavour intensity and with a full spectrum of phytonutrients. In SFE, the whole fragrance of the original substance is retained during the extraction process. With this we ensure that all extracts are 100 percent natural, authentic, and without solvent residues. These extracts open new possibilities where quality and added value are important.
What are the new areas that you are currently looking at? Are there any challenges?
In addition to further research on Konjac, we are exploring the food market where our products can be used. There are challenges in nearly every R&D project and we have to relentlessly keep on investing our time and energies into new research. For instance, there are certain herbal whitening agents which show favourable results during in-vitro tests. However, when these same ingredients are used as part of whitening creams, they fail to deliver the same results. Likewise, there are challenges at every stage.
How do you tackle these challenges?
We have to carry out the research processes repeatedly with minor changes in conditions or material used to identify the reasons behind such failures. Why does a particular thing that works in a test-tube environment fails in real life conditions? The challenge is to zero in upon the specific factors or materials that cause such failures and proceed further. We also work with specialist partners for clinical trials wherever required.
How is your business structured? Tell us about your company’s spread of operations.
More than 90 percent of our revenue comes from exports. We hope to close the current calendar year with more than 100 percent growth. There is no slowdown in our industry. People from all walks of life—all over the world—want to look good.
We have a direct presence in Europe, USA, India, South Korea and Japan where we have our manufacturing locations as well. We are opening a new R&D facility in France which will act as a window to the entire European market.
We did not focus much on the Indian market traditionally. However, we are targeting it consciously this year. India is a vast and promising market. Currently, we have our plants in India at Bengaluru, Kochi, and Puduchhery where we also have our sales and marketing staff stationed. We have a marketing office in Mumbai. Going forward, we will be expanding into the Northern and Eastern markets—step by step.