ITC places bet on premium aromatherapy

MUMBAI: For young working Indians juggling deadlines, to-do lists and responsibilities at office and home, mental wellness is becoming a priority; it is no longer an afterthought. Premium households in the metros are willing to spend on experiences that offer them a window of mental escapade. Travelling is a way out but it is not always feasible; instead people are splurging on things that have a soothing effect—for instance, something as accessible as fragrances which can be infused within a room before one goes to bed. This is the market opportunity that ITC is betting on.

The company has quietly forayed into the aromatherapy (home aromas) space with the launch of a new brand Pranah which will offer consumers a range of premium incense sticks, cones and scented candles. The home aromas market in India (would capture mass players such as Odonil, Ambi Pur) is pegged at some Rs 5500 crore but ITC is playing at the premium end which is still an emerging one. Largely, few digital-first brands operate in that space currently and ITC would be the first large player to tap into it. The bet fits in well with ITC’s next strategy steered by chairman and managing director Sanjiv Puri under which the company plans to invest in new consumption spaces that have the potential to drive future growth.

The premium aromatherapy market is currently worth about Rs 500 crore but could touch Rs 5000 Crore in a decade given its rapid growth, Gaurav Tayal, divisional chief executive, matches and agarbatti business at ITC told TOI. “Post Covid, there has been a surge in consumer demand for wellness choices. People now want to spend on themselves. The new generation is all about experiences,” Tayal said. The market opportunity also lies in the fact that there are no big players in the space as of now and the products on shelves are not backed by science, Tayal said.

For now, Pranah has been launched on a pilot mode in Delhi and Bengaluru through quick commerce channels which has become a staple for premium households besides e-commerce platform Amazon. It will be expanded to more metros around winter and at some point, the idea is to make the brand accessible for broader consumers. Not everyone can after all afford to spend close to Rs 1,000 on candles.

“There will be a plan to bring trial and sample packs at accessible price points. We will also set up offline experience zones in cities,” Tayal said.

Even as growth in the broader FMCG space has been sluggish, the trend of premiumisation has remained intact.

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