Case 1-Ajmal Perfumes
Case 1-Ajmal Perfumes
Case 1-Ajmal Perfumes
Aroma of Success
Priyanka Lalwani
Abstract
The origin of perfumery can be traced back to the true cradle of human
civilization and culture in ancient Mesopotamia and Egypt. The world’s first
referenced chemist was a perfumer named Tapputi-Belatekallim who lived in
Babylon more than 3,000 years ago. She used her intimate knowledge of
chemistry to develop various formulations and techniques to revolutionize the
process of perfumery creation. Similarly, Ajmal is one of the first companies in
the Gulf Cooperation Council (GCC) to have pioneered the science and art of
perfumery creation. This case study describes the inspiring journey of Ajmal
Perfumes which began in the farms of a small village located in Hojai, Assam,
to becoming a world-class perfumer with a global reach of over 45 countries.
From “Farm to Flacon,” (Flacon a.k.a glass bottle) the company’s perfect control
over their seamless value chain has enabled them to sustainably grow their
business while maintaining high standards of quality. Their performance across
five major dimensions (finance, market, processes, people, and corporate social
responsibility [CSR]) is used to gauge their success. In this case analysis, the
strategic framework behind the success of Ajmal Perfumes is captured.
Transformational Leadership (TL), Customer Centricity (CC), Intrapreneurial
Behavior (IB), Total Quality Management (TQM), Innovation Success (IS),
Absorptive Capacity (AC), and CSR are identified as their key drivers of
success. A critical review of existing literature related to success drivers was
also undertaken that brought forward knowledge gaps and future areas of
research in the domain of TQM and AC.
Corporate Success Stories in the uae: The key Drivers Behind Their Growth, 1–17
Copyright © 2021 by emerald Publishing
Limited all rights of reproduction in any form
reserved doi:10.1108/978-1-80043-578-
020211001
AJMAL PERFUMES – The Inimitable Aroma of Success 2
Introduction
Perfumes have become a conspicuous element in several cultures and have been
associated with an ostentatious display of wealth and power. For centuries, France
has been the authority in the world of perfumes industry. Grasse has been known as
the “perfume capital of the world,” where some of the big names of the industry such
as Dior, Hermes, and Chanel continue to grow flowers in protected fields. Rare
flowers such as Centifolia rose, Jasmine, Orange Blossom are cultivated and
harvested in Grasse, which serve as key ingredients in manufacturing timeless
classics such as Chanel N°5, J’Adore, Miss Dior. To maintain the quality and
consistency of their natural ingredients, brands such as Chanel and Guerlain have
been among the few handful fragrance houses in the west to drive the massive supply
chain transformation process, “from Field to Flacon.”
Nearly, 4,000 years ago, the first form of perfume; “incense,” was discovered by
the Mesopotamians. The art of perfume preparation which was born in ancient
Mesopotamia and Egypt, later travelled to the Romans and the Persians where it was
further refined (Gadea, Vatca, & Vatca, 2017). There has been growing anecdotal
evidences of the use of essences and perfumery for religious and aromatic purposes.
While concentrated aromatic oils can be extracted from several plant species,
Agarwood, particularly has been revered and cited in early seminal texts of Hinduism,
Islam, Christianity, and Buddhism (López-Sampson & Page, 2018). Agarwood is the
fragrant resin-infused wood derived from the wounded trees of Aquilaria species
which is grown only in parts of South East Asia. Agarwood fragrance has been
described in Sanskrit texts as early as 1,400 BCE, and several of its medical
applications were detailed as early as 65 BCE. Furthermore, on numerous occasions
agarwood has been mentioned in the Quran and the Hadith. For instance, historically
Agarwood was also highly valued for its medicinal properties and was recommended
by prophet Mohammad (PBUH) in treatment of ailments (López-Sampson & Page,
2018).
Agarwood, also known as Oudh, has been one of the most recognized and revered
fragrances in the Arab world. However, the popularity of Oudh and Oudh oil amongst
western perfumery brands has risen exponentially only since the launch of yves Saint
Laurent’s M7 in 2002 under its then creative director Tom Ford. Currently, Oudh is
one of the most expensive raw ingredients in the fragrance industry due to which it is
often referred to as “black gold.” The price of a kilo of oudh is often similar and
occasionally even more expensive than gold. Due to its high demand and limited
supply, oudh is currently one of the most desirable ingredients of the world. Currently,
the global agarwood market is valued over £5 billion annually (Clark & Johnston,
2020). In perfumery, oudh is either used in the form of oudh oil (dahn al oudh) or
oudh wood (incense). Oudh oil, also referred to as liquid gold, is also one of the most
expensive oils in the world.
This case analysis illustrates the successful journey of a farmer whose name has
now become synonymous with quality and excellence in the perfumery industry. It is
the success story of a perfumery brand which entered the oudh market nearly half a
AJMAL PERFUMES – The Inimitable Aroma of Success 3
century before the international fragrance industry began to get tinged with the
hypnotic magic of oudh. Oudh, which is also the DNA of the brand, has changed the
fortunes of Ajmal Perfumes. In the last seven decades, the organization has witnessed
unparalleled exponential growth in the GCC perfumery market. It has surpassed
majority of its regional business competitors to establish its strong presence in the
international market. This case analysis lists down the ingredients of Ajmal’s success
story and the criteria by which they measure their success. Furthermore, a critical
review of existing literature related to success drivers is also undertaken to analyze
the extent to which key drivers and how they are practiced either align or deviate from
existing literature and accordingly, areas of future research are suggested. ajmal
Perfumes – an Overview
Founded in the year 1951, Ajmal Perfumes is one of the largest manufacturers of
fragrances in the Middle East and around the globe. The company is also one of the
first perfumery houses in the region to establish a Research & Development wing to
create state-of-the-art fragrances. Furthermore, Ajmal Perfumes is also one the first
perfumery companies in the GCC to work closely with local and regional bodies such
as the Emirates Authority for Standardization and Metrology (ESMA) towards
creating a viable and effective quality standards mechanism in the GCC region.
Today, Ajmal Perfumes is renowned in the perfumery industry for the quality of its
fragrances that it has been producing since 1951. From “Farm to Flacon,” Ajmal
Perfumes is one of the few perfumery houses in the world to have such a high degree
of vertical integration. The company has access to its own raw materials and
ingredients and has agarwood plantations across the North Eastern regions of India.
Ajmal Perfumes has ownership of most of the aspects of its supply chain such as raw
materials, fragrance development, manufacturing, design, retail, and distribution.
Having control of nearly all stages of their value chain positively impacts their supply
chain efficiency. Ajmal Perfumes has grown multifold since the inception of their
first retail outlet in Dubai in 1976. Today the firm has more than 240 retail stores
globally with presence in more than 45 countries of the world. It has a 150,000 sqft
state-of-the-art factory which manufacturers nearly 100,000 perfume bottles every
day. Moreover, it also has over 1,000 dealerships and distributors across the world
and has presence in more than 30 global duty-free outlets and international airlines.
Ajmal Perfume also has a vast product portfolio of over 300 finest fragrances. know
Their Roots – how it all Began?
The origins of brand Ajmal can be traced back to the early 1950s, when a young
farmer from Hojai, ventured into the jungles of Assam, India, that grew Agarwood
(Aquilaria) trees. A rice farmer by profession, the founder Late Haji Ajmal Ali was
searching for liquid gold called “oudh” which was going to change the fortunes of his
family and the face of the perfumery industry. After he learned the art of oudh
extraction and procured oudh, he made a momentous move to Mumbai, India in
1950s. Mumbai was the marketplace for oudh and oudh oil trade in India. With only
INR 500 as capital, he opened his first shop at Nagdevi Street at Crawford Market in
AJMAL PERFUMES – The Inimitable Aroma of Success 4
Mumbai, India. It wasn’t long before he started creating various fragrant oils and
cultivated a reputation as a prodigious perfumery supplier amongst Arab traders who
visited India’s western shores. With the orders flooding in from the exclusive markets
in Middle East, the late Haji Ajmal Ali decided to brand its product ranges using his
patronymic or family name “Ajmal.” He realized the countless opportunities that
existed on the other side of the Arabian Sea, and thus, in 1976, Ajmal opened its first
outlet in Dubai, UAE.
In 1976, Ajmal launched its first fragrance “Mukhallat” (Arabic for “concoction”).
The product was an instant success and prompted the company to launch several more
products. Furthermore, in 1987, Ajmal Perfumes became the first company to
introduce the magic of Dahn Al Oudh (Oil of the Oudh) in Eau de Parfum form for
the wider global audience. Prior to this, Dahn Al Oudh was always available in the
oil form as a traditional scent of the Arab culture. In 1987, Ajmal Perfumes also
established its first factory in Dubai, UAE. Simultaneously, the company also set-up
a high-tech R&D facility.
Ajmal Perfumes, the iconic perfumery brand, embodies its founder’s philosophy of
crafting memories which serves as a blueprint for its operations. The brand through
its fragrances aims to recreate odor-induced nostalgic memories and emotions for its
customers. It aims to enrich the lifestyle of its customers by encouraging innovation
and continual improvement, by adopting ethically, socially and environmentally
responsible practices, by attracting and retaining best talent, by establishing and
maintaining relationships with its stakeholders based on trust and respect, and by
maximizing stakeholder interests.
Over the last seven decades, Ajmal Perfumes has changed the landscape of
fragrance creation and selling in the regional market. It has created groundbreaking
innovations such as Dahn Al Oudh spray and Oudh Mubakhar which have changed
the way how customers use oriental perfumery. Every year the company also allocates
a sizeable R&D budget and introduces at least 8–10 new products in the market.
Ajmal Perfumes has been one of the first perfumery companies in the region to make
the shift from transactional selling to creating more relational experiences for its
customers. It has raised the bar of the regional perfumery market and has brought the
aroma of oudh to the west. The company through its adoption of the triple-bottom-
line principles of people, planet, and profit has also created long-term value and
success for its stakeholders. Today Ajmal Perfumes has become synonymous with
trust and has one of the highest customer and employee retention rates in the regional
fragrance market.
AJMAL PERFUMES – The Inimitable Aroma of Success 5
or skills. They are also responsible for the maintenance and evolution of
International standards for namely ISO 9001, ISO 22716, ISO 22301 and
Emirates Quality Mark requirements.
7. Dahn al Oudh & agarwood – Dahn Al Oudh & Agarwood is headed by Mr
Abdur Rahim Ajmal, who is also a third-generation member of the Ajmal family.
This team is responsible for the all the processes related to dahn al oudh and
agarwood such as planning and budgeting, procurement, negotiation, processing,
new product development (NPD), bulk production, packaging, and supply.
8. administration & Public Relation Coordination (PRC) – The Administration
& PRC department, which is headed by Ms Helen Rebello, plays a primary role
in the organization’s optimal functioning. This team is responsible for utilities
management and control; dispatch control; event management and sponsorship;
labor camp management; trademark renewals and registrations; Oman sales
coordination; Kingdom of Saudi Arabia (KSA) sales coordination, and other
related functions.
9. Public Relations (PR) – The PR department is headed by Mr yahya Azam. This
team is responsible for trade and industrial license renewal; visa and labor card
renewals; handling of permits for all Sales & Promotions; and other related
functions.
10. human Resources (hR) – The HR department, headed by Mr Anthony Sagaya,
oversees employment-related functions. It plays a key role operationally and
strategically to develop talent within the organization that enables Ajmal
Perfumes to meet its strategic goals. Some of key functions of the HR department
are Recruitment & Selection; Compensation & Benefits Management;
Performance Management; Employee Relations & Engagement; Training &
Development and Legal Compliance.
11. Supply Chain – The supply chain department, which is headed by Mr Shapoor
Bhathela, is a key department responsible for overall coordination and
management of a complex network of activities involved in delivering a finished
product to the end-user. The department is split into seven distinct functional
areas which internally work together seamlessly, namely Materials Management
Development (MMD) Planning, Design Development Primary (DDP), Design
Development Secondary (DDS), MMD Purchase, MMD Logistics,
MMD Warehouse, and Production Packaging. MMD Planning, DDP, and DDS
departments are headed by Mr Asadullah Ajmal, who is also a thirdgeneration
Ajmal. Besides heading the supply chain department, Mr Shapoor Bhathela is
also the head for Travel Retail, Ajmal’s entry-level masstige brand Maryaj, and
International Export 1 & 3 departments.
12. Travel Retail – The Travel Retail is headed by Mr Oscar Menezes and reports
directly to the General Manager, Mr Shapoor Bhathela. The key functions of this
department are business development, implementation of promotional strategies
in duty-free outlets/airlines aimed at increasing brand visibility.
13. International export 1 & 3 – All international export markets excluding the
United States are handled by the departments Export 1 and Export 3.
AJMAL PERFUMES – The Inimitable Aroma of Success 8
No half Measures
“If you can’t measure it, you can’t improve it.” – Peter Drucker (1909–
2005)
procuring raw materials from them. Their rejection and complaint rate per annum is
a mere 0.001%. Finally, their measures of human resource management efficiency
such as their high employee retention rate is also a crucial indicator of their success.
They have been known in the regional market to have one of the highest retention
rate to the extent that a considerable number of their employees work with the
company until retirement. Roots of Success
“If you want the present to be different from the past, study the past”
– Baruch de Spinoza (1632–1677)
Several researches and case studies on organizational success stories have contributed
to a wealth of knowledge about best practices and success drivers across industries.
After a thorough study of Ajmal Perfumes, seven drivers have been identified as key
to their success. While each of these have been independently studied by various
researchers and practitioners, the following framework provides novel insights into
how they have collectively led to the success of a perfumery house which has
expanded multifold over the past seven decades:
Their strict adherence to quality standards leads to a very low rejection and complaint rate per annum of only 0.001%.
Ajmal Perfumes’ internal quality standards are far more stringent than required by the international norms in the
perfumery industry. For instance, Ajmal Perfumes goes above and beyond the requirements of the Acceptable Quality
Level (AQL) standards. Furthermore, Ajmal Perfumes also maintains the quality of its products by liaising with few
quality conscious suppliers. On several occasions, Ajmal Perfumes has actively liaised with its suppliers and provided
them feedback and technical assistance to improve their quality. Additionally, quality control processes are established
and planned for various processes of the organization. For instance, when any raw materials are purchased by the
company, an incoming Quality Control (QC) is applied. Only after its compliance, the product is transferred to the
warehouse. Moreover, the company through its open communication channels also solicits feedback from both its
internal and external customers on quality and delivery. Ajmal Perfumes also regularly provides quality training to its
employees and has detailed process manuals in place such as their QC manual.
3. Transformational Leadership (TL) – Ajmal Perfumes’ TL has been pivotal to their success. TL in Ajmal Perfumes
is characterized by supporting employee needs; promoting transparency of organizational issues; inclusiveness in
decision-making; promoting and clearly articulating corporate vision; encouraging creativity and innovation; and
exercising a greater influence on employee behavior through charismatic leadership. For instance, to foster creativity,
the management has implemented various initiatives such as the introduction of an idea box, organizing creativity
workshops, fostering an open culture, and rewarding noteworthy ideas with both financial and non-financial incentives.
Furthermore, the leadership also fosters inclusiveness by making and implementing shared decisions, a process they
internally refer to as “mashwara.” The leadership also encourages creative thinking to generate win-win business
solutions such as empowering employee to test new ideas and experiment with new technologies. For instance, Ajmal
Perfumes was one of the first brands regionally to have their own inhouse 3D printing technology which is used for
developing innovative packaging prototypes. The leadership at Ajmal Perfumes is supportive of employee growth and
development. For instance, twice a year for two weeks each, their junior perfumery team member is sent for a technical
training program to an international perfumery house. Moreover, the company regularly encourages employees to
attend relevant exhibitions and events to increase their industry knowledge of new materials, fragrances, molecules,
and advanced technologies. The leadership has developed an organization-wide culture that is truly open to change and
innovation in every aspect of the business. For example, Ajmal Perfumes provides employment growth opportunities
by supporting inter-departmental moves, which is a very uncommon practice for a small and medium-sized enterprise
(SME) in this industry. The leadership also regularly communicates with its team by monthly newsletters, and by
sharing videos, experiences and case studies to encourage creative problem solving and organizational learning.
4. Customer Centricity (CC) – Ajmal Perfumes’ success is also attributable in large portion to the organization’s
customer centric approach. Ajmal Perfumes places consumers at the center of everything they do, and customer service
is a concept that is ingrained and constantly reinforced within the organization. For instance, Ajmal India operates on
a concierge hospitality model which is committed to excellence in customer relations management. From the moment
a customer arrives in India, all their personal needs are taken care of right from their travel arrangements, to airport
pick-ups, to hotel arrangements, to scheduling of doctors’ appointment. Ajmal Perfumes strives to maintain long and
strong relationship with their customers. The company also provides exclusive services to their corporate clients and
their high net worth customers through their business vertical “Ajmal Bespoke.” For instance, during special occasions
such as a wedding ceremony, an Ajmal salesperson would visit the customer’s house with their product range.
Furthermore, customer needs are also centric in product creation. Qafiya Arabia was GCC’s first consumer-driven co-
creation initiative where the customers themselves created the entire product – from the selection of the ingredients, to
the making of the fragrances, to the design of the bottles, to the packaging and finally the communication around them.
Moreover, Ajmal Perfumes was one of the first companies amongst its contemporaries to have a shop-in-shop retail
section called “My Inspiration” where consumers could experiment and create their own customized fragrances. The
company also puts a strong emphasis on sales training to provide a superior customer experience. For instance, Ajmal
Perfumes is amongst the few regional perfumery companies to have an onboard Arabic/ English trainer dedicated to
providing product training, sales skills training, and language skills training.
5. Innovation Success (IS) – A key driver of Ajmal’s success is also the effectiveness of the company in implementing
business innovations. For instance, Ajmal Perfumes has introduced several key innovations in the perfumery market
which have provided them with a competitive advantage; enhanced their sales and profitability; increased their market
share; increased their brand awareness; attracted new customers and improved their brand loyalty. For instance, Ajmal
Perfumes was the first company to launch Dahn Al Oudh in Eau De Parfum (EDP) form, which not only improved its
revenues but also increased its global customer reach. Previously Dahn Al Oudh was only available in the oil form.
Ajmal Perfumes invests considerably in R&D with the aim of not only improving the quality of its products but also
AJMAL PERFUMES – The Inimitable Aroma of Success 11
with the vision of introducing some of the state of art raw materials in the industry. Furthermore, in 1997, after 4 years
of intensive research, Ajmal Perfumes launched a new product named “Oudh Mubakhar” which was created with their
patented technique of putting the fragrance into the Oudh, which now serves as the industry standard. The company
has not only built a reputation of success in product innovation, but also in customer delivery. For instance, Ajmal
Perfumes has leveraged retail science to improve their customer experience and retail performance. For instance, the
layout of their stores is designed to display all packaged branded items on the right side, oils on the left side, and oudh
in the center toward the end. This is done with the intention of displaying fragrances from light to heavy, so that the
customer olfactory senses aren’t overloaded right at the outset of their purchase journey. Ajmal Perfumes’ creativity,
proactiveness, risk-taking willingness, future orientation, and openness contribute to its IS. Contemporaries in the
regional perfumery market follow the lead of Ajmal Perfumes in innovation.
6. absorptive Capacity (aC) – Another key driver of Ajmal Perfumes success is the AC of the organization through
which it identifies new external information, understands it, incorporates it and utilizes it for commercial purposes.
Furthermore, the company also maintains key knowledge internally for deferred future use. For instance, Ajmal
Perfumes through market research has identified varying customer needs and usage patterns amongst its Khaleeji
customers; such as personal use, social use, religious use, and home use. The company has then used this knowledge
to introduce differentiating products to address consumer needs. Moreover, Ajmal Perfumes also retains formulations
internally which they later use to introduce new innovations. For instance, the company had a product Khashab which
was reintroduced with modification in the limited-edition line Shagaf. Additionally, the company also actively engages
in research of current trends and competitive audits to find out what consumers are purchasing and dissecting fragrance
structure to identify predominant notes. Accordingly, they use this new knowledge to explore new business
opportunities. They also use this knowledge to adjust their business strategy and introduce new products in the market.
Finally, the company through its loyalty program, Ajmal One gathers valuable customer information such as their
purchase history which they later use to improve their lead conversion rate. For instance, when a customer doesn’t visit
their store for over three months, a notification is flagged, and subsequently various customer reactivation strategies
are used to discover the cause of their “hibernation” and draw them back in.
7. Intrapreneurial Behavior (IB) – One of the key drivers of Ajmal Perfumes success is also the IB within the
organization which is characterized by employee proactiveness, innovativeness, risk-taking, new business venturing,
opportunity recognition and exploitation, thinking outside the box, and self-renewal. The management maintains the
philosophy that their staff should behave like entrepreneurs rather than just employees, and actively encourage bottom-
up approach to innovation. For instance, on several occasions the idea and the base formulations for perfumery have
been suggested by the shop floor sales staff directly to the Deputy COO, which serve as a basis for NPD such as for
the product Areeq. To foster IB within the organization the management provides their support (financial and non-
financial), rewards and recognitions, autonomy, flexibility, and company time and resources. Furthermore, Ajmal
Perfumes also had a formal program for all its employees which reward new business ideas by empowering employees
to lead the execution. The program was aimed at fostering entrepreneurship and leadership within the organization.