India investigates fragrance giants over price collusion, document shows
NEW DELHI: Global fragrance makers Givaudan, Firmenich and International Flavors & Fragrances face a second antitrust investigation by Indian authorities, according to a regulatory document seen by Reuters . The latest case relates to alleged price collusion since 2024, said a source close to the matter, and follows an ongoing investigation into accusations that the companies struck labour…
A regulatory document seen by Reuters reveals that global fragrance manufacturers Givaudan, Firmenich and International Flavors & Fragrances are now under a second antitrust investigation by Indian authorities. The investigation centers on alleged price collusion since 2024, according to a source familiar with the matter. This follows an ongoing probe into accusations that the companies conspired to prevent employees from leaving and taking knowledge to rivals, a claim the companies have admitted to cooperating with global anti-cartel investigations.
The confidential Competition Commission of India (CCI) report, dated July 22, describes the new case as one related to "alleged cartelisation in the Indian fragrance industry" by the three companies. Both Swiss-based Givaudan and U.S.-based IFF declined to comment on the matter. Additionally, DSM-Firmenich, formed from the 2023 merger of Dutch specialty chemicals firm DSM with Firmenich, also did not provide a response to requests for comment.
In 2023, Swiss and British antitrust regulators confirmed they were investigating the three companies, and the European Commission has stated it is examining "possible collusion" related to the supply of fragrances and their ingredients without naming any targets. Details of price-fixing cases are typically kept confidential during investigations in India.
In this specific case, the CCI submitted an investigation report in February, which was subsequently recalled in July due to complaints from Givaudan and IFF regarding the improper redaction of their commercial secrets. The report will now require redrafting, potentially delaying the ongoing case.
Gautam Shahi, an Indian antitrust lawyer, expressed concern over the loss of crucial commercially sensitive data during the redrafting process, warning it could harm competition in the market. India's flavors and fragrances market is projected to reach $5 billion by 2033, up from $2.5 billion in 2024, according to Grand View Research.
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