India investigates fragrance giants over price collusion, document shows

• The CCI's investigation report was recalled in July 2024 after Givaudan and IFF complained their commercial secrets were not properly redacted, potentially slowing the two-year-old case
• India's flavors and fragrances market is projected to double from $2.5 billion in 2024 to $5 billion by 2033
• The three companies are already facing multiple global antitrust investigations, including probes by Swiss, British, and European Commission regulators over similar collusion concerns

Summary

Key Development:

India's Competition Commission (CCI) has launched a second antitrust investigation into three global fragrance giants—Givaudan (Switzerland), Firmenich (now DSM-Firmenich), and International Flavors & Fragrances (IFF, U.S.)—over alleged price collusion in the Indian fragrance industry since 2024.

Investigation Details:

This marks the companies' second Indian antitrust case, following a previous investigation into alleged labor anti-poaching agreements. A confidential CCI document dated July 22 describes the case as "alleged cartelisation in the Indian fragrance industry."

Procedural Setback:

The CCI's investigation report was recalled in July after Givaudan and IFF complained that their commercial secrets were not properly redacted. The report must now be redrafted with appropriate redactions, potentially delaying the two-year-old investigation. Legal experts warn that loss of commercially sensitive data could harm market competition.

Broader Context:

The three companies face similar antitrust scrutiny globally. Swiss and British regulators began investigating them in 2023, while the European Commission is examining possible collusion related to fragrance supply, though targets haven't been publicly named. The companies have stated they are cooperating with global anti-cartel investigations.

Market Size:

India's flavors and fragrances market is projected to double from $2.5 billion in 2024 to $5 billion by 2033, according to Grand View Research.

Company Response:

None of the implicated companies—Givaudan, IFF, DSM-Firmenich—or the CCI responded to requests for comment.

The investigation highlights increasing regulatory scrutiny of potential anticompetitive practices in the global fragrance industry.