Acquisition details
As a result of the joint acquisition, the new entity has been named CFS Wanglong.
The Indian-headquartered fine chemicals producer provides antioxidants and active ingredients to the cosmetic, personal care and pharmaceutical industries.
Organic component
CFS Wanglong will manufacture and market Vanillin flavours and fragrances. Vanillin is an organic compound that is the main extract of the vanilla bean. After production, this will then be distributed to industrial consumers around the globe.
Following the move, “CFS becomes the third largest producer of Vanillin in the world”, the company announced in a recent press release.
The Asian and European arms of the company will collaborate to extend vanillin and Wanglong’s reach to international customers. The company's expansion into China gives CFS Wanglong manufacturing capabilities in four continents.
Asian and European collaboration
A leading global vanillin producer, Wanglong, manufactures the component in its 3500 square metre focused facility in Yuyao, Zhejiang province, China.
CFS’ manufacturing plant is situated in Ravenna, Italy. The facility uses an environmentally-friendly production method to make Catechol — the basic material used to make Vanillin and Ethyl-Vanillin.
Future is in flavours and fragrance
Through the production of its Vanesse (vanillin) and EvanilTM (ethyl vanillin) brands, the company aims to focus its future growth towards its flavours and fragrances segment.
“Our brands Vanesse (vanillin) and EvanilTM (ethyl vanillin) have grown the customer base not only from food and flavour industry but also manufacturers of fragrances, incense sticks, pharmaceutical industries and perfumeries,” CFS Wanglong stated.
Going forward, it plans to evolve from a food and flavour brand to a manufacturer of fragrances and perfumeries.
“Our Flavours & Fragrances segment will contribute to a large portion of our business in the near future,” the company said.
The company has recently added to its range of fragrance application products. Designed with the personal care and cosmetics markets in mind, the CFS Wanglong also released its aromatic chemical, Vetigreen, and fragrance and flavour chemical, Intense Green.
Using “high-quality innovative ingredients across geographies” and careful testing to ensure consistency, CFS Wanglong anticipates that its entry into the Chinese organic market will support its global expansion efforts.
“To support future growth, CFS Wanglong will introduce relevant processes and equipment besides existing installed adequate capacity for operations.”
Natural preference
As the importance of health and wellness amongst Indian consumers, in particular, intensifies, a growing number of brands are turning to natural, organic, herbal and Ayurvedic products to satisfy these demands.
Informing and educating consumers through promotional campaigns, in store advertisements and packaging claims are becoming common techniques amongst leading Indian personal care brands. These help to raise awareness of the benefits of natural ingredients, Euromonitor International reports.