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Ingredients & formulation

Garden Química forecasts a 49% increase in sales for 2016

Ranked among the top five manufacturers of quaternary ammonium compounds in Brazil, the company plans to expand operations in Latin America and open its second plant next year.

Garden Química has operated in the personal care and cosmetics industry for over two decades, but while the Brazilian beauty industry experiences its first decline in the past 20 years, the company expects an increase in revenues. In 2015, Garden Química’s sales went up by 37% compared to the previous year. In 2016, the goal is even more ambitious, with a projected 49% increase in revenues.

Berenice Freire, founder and president of Garden Química

Berenice Freire, founder and president of Garden Química

"Despite a turbulent year for the industry, we achieved an excellent result in 2015," says Berenice Freire, founder and president of Garden Química. She believes that the company’s good results were driven by a strategic vision focused on seizing opportunities that arose in an unfavorable scenario. "We are much closer to our clients and always ready to offer cost-saving alternatives without compromising on quality."

Freire points out that the financial crisis did not diminish the importance of the Brazilian beauty market in the global context. “We stand in fourth place in the world ranking of largest consumer markets, right behind the US, China and Japan. It is an increasingly demanding market, but also very promising," she says. Companies like Avon, Croda, Davene, Inoar and Phisalia are among Garden Química’s clients.

With both its headquarters and plant based in Guarulhos, in the greater São Paulo area, Garden Química also operates in the home care and industrial chemicals industries. The company has vertical storage, integrated logistics, a privately-owned fleet and laboratories for microbiological tests. But it all started in a 12-sqm room, where Freire decided to use the experience acquired over the years as a salesperson for chemical products to invest in her own sales business, with the perspective of becoming a manufacturer of raw materials in the long run.

"We’ve always had a strong focus on quickly identifying business opportunities. When visiting clients, we noticed a lack of manufacturers that could cover the entire production chain. As we established a good relationship with these companies, they asked us if we would also be interested in supplying them with cosmetic ingredients," says Freire. The increase in demand motivated her to invest in the lease of a 700-sqm warehouse and the purchase of a reactor. The company’s first annual turnover was R$ 35,000. The target for 2016 is to reach R$ 46 million.

Garden Química currently has over 100 ingredients in its portfolio and claims to be among the top five manufacturers of quaternary ammonium compounds in Brazil. The company operates throughout the country and plans to expand operations to Latin America. "We already export to Ecuador and plan on entering the markets in Argentina, Chile and Colombia with cosmetic supplies," adds Freire. She says that Garden Química invests on average 2% of its annual revenue on innovation, manufactures biodegradable products and does not generate chemical waste.

Among the main market trends, Freire highlights treatments for curly hair, anti-aging products and dermocosmetics. Garden Química’s product launches for 2016 are an oxidant active ingredient for hair-bleaching products, an ingredient that claims to reduce hair volume through the esterification of acids found in beets, and high grade, refined isoparaffin waxes for the production of lipsticks, moisturizers and emulsions.

In addition to focusing on exports to Mercosur, the company also plans on opening its second industrial plant in 2017. The location of the new factory is confidential.

Fernanda Bonifacio

Portfolio

© 2016 - Brazil Beauty News - www.brazilbeautynews.com

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