Business Today
Demand from China helps Everest Flavours post stupendous growth
Everest Flavours exports 95-99% of its products, with demand from China - driven by the country's focus on food crops since 2008 - acting as a driving force.
Anand Ladsariya

Anand Ladsariya

BEST SME- GLOBAL BUSINESS EXCELLENCE

TOTAL INCOME Rs 101 Crore - 250 Crore

Anand Ladsariya, 57, is a known face in the angel investing community. Since 2007, the founder and Managing Director of Everest Flavours has invested Rs 6.5 crore in 60-odd companies, including OYO Rooms, GreenDust and Speakwell. A first-generation entrepreneur, Ladsariya started his entrepreneurial journey as a trader in menthol and peppermint oils in the early 1980s as a 25-year-old. The surge in demand for these oils - used in toothpaste, pharmaceuticals, balms, tobacco products & confectionery - over the past three years, especially from China, has helped the company make big gains.


KEY FACTS
  • Everest Flavours is a manufacturer and exporter of menthol, peppermint oil and essential oils
  • China's policy of focusing on food crops has helped Everest
  • It has increased menthol capacity from 50 tonnes to 2,500 tonnes in 29 years

After starting trading operations in 1983, he opened a factory in Mumbai in 1986 that could produce 50 tonnes of menthol crystals. In 29 years, that capacity is now up to 2,500 tonnes.

 

FULL COVERAGE:India's best SMEs 2015

Having started with the domestic market, the company ventured into exports in the 1990s. To mitigate the fluctuating prices of mentha leaves, Everest decided to sell one-third of its produce to Singapore-based Tien Yuan Chemical on the basis of a fixed-formula under a long-term contract. "In 1984/85 we used to import from Tien Yuan; after 1986/87, they started importing from us," says Ladsariya. "Selling one-third of our produce under a fixed formula helps us mitigate risk." Adds C.L. Shih, MD of Tien Yuan Chemical: "Our three-decade-old relationship with Everest has been a win-win situation for both of us."

title=/

Today, Everest Flavours exports 95-99 per cent of its products, with demand from China - driven by the country's focus on food crops since 2008 - acting as a driving force. In 2013/14, the company's revenues reached Rs 123.45 crore, and it enjoys net margins of 4-5 per cent.

What are the challenges? "The Chinese slowdown has already impacted us with volumes falling 10-15 per cent," says Ladsariya. In terms of future plans, he says his focus will be on value-added products. "We have started manufacturing blended oil. It will improve margins and increase profitability." Ladsariya hopes the rise in global consumption of consumer products could help grow Everest's top line by 10 per cent and profits by 15 per cent over the long term.

Get latest news & live updates on the go on your phone with our News App. Download The Business Today news app on your device
More from SPECIAL