Showcasing the Excellence of SHEFEXIL Products from India: A true global benchmark for Quality and Competitiveness

India, in addition to being a land of diverse cultures and rich heritage, is also home to many superior-quality agri-based products and botanicals. The Shellac and Forest Products Export Promotion Council (SHEFEXIL), formed under the sponsorship of the Ministry of Commerce & Industry, Government of India, was established to facilitate the export of India’s shellac and lac-based products. SHEFEXIL promotes the export of various products, including shellac and lac products, Guar Gum and its value-added derivatives, Nutraceuticals, and Botanical Extracts used in food ingredients. Each of these products is distinguished by agricultural excellence, Indian craftsmanship, and stringent quality control.

In terms of export excellence, as confirmed by international buyers, the three leading products are Lac and Lac-based value-added products, Guar Gum and its derivatives, and Nutraceuticals, including food ingredients made from Indian botanical extracts. All these products are native to the Indian subcontinent and are truly unique. These three stand out for their exceptional quality, meeting global standards, and excelling in international competition.

Shellac and Lac Products

Lac and its value-added variants, the original flagship products of SHEFEXIL, are recognized as heritage products of ancient India that have overcome numerous challenges to emerge as global leaders. India is widely acknowledged as the home of Lac and is renowned for being a leading supplier of high-quality, value-added shellac products used in diverse applications worldwide.

Along with China, Thailand, and Indonesia, India leads as a producer, processor, and exporter of lac-based products. The steady export of these products by SHEFEXIL is supported by stringent quality control measures and continuous value addition. India’s annual Lac production is estimated at approximately 21,700 MT, accounting for 70-80% of the world’s total production.

The export of this heritage product, maintained through high quality and reliable supplies, remains consistent. Around five lakh households in India, particularly in eastern regions, depend on Lac cultivation for their livelihood. With only 23% of Lac host trees currently utilized, there is significant potential to increase production to 90,000 MT by tapping into the unused host trees available across the country. Lac is a highly export-oriented product, with nearly 70% of its production being exported to over 50 countries for a variety of industrial uses.

Lac products are applied across diverse industries, including varnishes and paints, polishing, coatings/glazing for confectionery and fruits, pharmaceuticals (medicine coatings), cosmetics, perfumery, electricals, handicrafts, and more.

Primarily grown on wasteland, promoting Lac cultivation helps in ecosystem development while also providing socio-economic benefits to India’s marginalized tribal populations. The major export markets for Lac and shellac include the USA, Germany, China, Bangladesh, Canada, Spain, and the UAE. Shellac's unique properties make it suitable for a wide range of uses, such as wood polish (French polish), medicine coatings (for timed enteric or colonic release), food coatings, textile dyeing, and cosmetics like nail polish and topcoats.

Shellac is a versatile product with applications in various industries, including fireworks, jewelry, and handicrafts. Its medicinal properties are extensively utilized in Ayurveda, Siddha, and Unani systems of medicine, where it is valued for its hepato-protective and anti-obesity properties. Additionally, shellac is an approved food additive in both the United States and Europe, where it is labeled as E904 under European food regulations. It also holds Generally Recognized As Safe (GRAS) status as designated by the FDA. Recently, the European Food Safety Authority (EFSA) approved an application for the extended use of shellac (E904) in dietary foods for special medical purposes.

Key value-added shellac products include Aleuritic Acid and Iso-ambrettolide. Aleuritic acid, which makes up 20-35% of shellac, is primarily used in the perfumery industry as a starting material for the preparation of macrocyclic "musk" aroma compounds. Aleuritic acid esters are also used in the production of lacquers and varnishes.

Guar Gum and Inbuilt natural qualities

Indian Guar is now well-positioned to climb the global value chain through the introduction of high-value derivatives developed through research. The chemical modification of Guar is carried out via processes such as depolymerization, quaternization, carboxymethylation, and hydroxypropylation. For developed countries like the USA, two key factors in selecting Guar for fracturing processes are its low cost and easy availability, both of which Indian Guar products excel in.

Indian Guar is unique in its agricultural essence and has successfully met importers' growing demands, addressing their search for cheaper natural or synthetic substitutes. With increasing domestic production, India assures stable global supplies, contributing to competitive pricing. Value-added Guar gum powder, a sought-after product, is widely used in the manufacture of lipsticks, shampoos, face masks, and conditioners. It competes globally with superior conditioning properties, enhancing hair and skin softness and aiding in de-tangling of hair.

Indian manufacturer-exporters are known for their ethical practices, further boosting the appeal of Indian Guar in international markets. The naturally endowed Guar gum powder undergoes quality testing in government-approved labs, a significant advantage for global buyers. As Indian Guar continues to be recognized for its superior quality and ethical production standards, it reinforces India’s leadership in the global marketplace.

For importers seeking products that combine exceptional quality with ethical practices, Indian Guar offers unparalleled value. As it gains further recognition worldwide, India’s position as a leading supplier of Guar continues to strengthen.

Nutraceuticals

The newest addition to SHEFEXIL's export product portfolio is Nutraceuticals, arguably the most dynamic category with enormous untapped export potential. These products undergo strict quality control, as all related categories are governed by the regulations outlined in the Food Safety and Standards Authority of India (FSSAI) guidelines titled Food Safety and Standards (Health Supplements, Nutraceuticals, Food for Special Dietary Use, Food for Special Medical Purpose, Functional Food and Novel Food) Regulations, 2016, published in the Gazette of India on 23.12.2016.

New product strengths are supported by a robust foundation of R&D, sustained clinical trials, and a food testing infrastructure designed to keep pace with rapidly evolving regulations and buyer requirements in international markets.

Medicinal Herbs and Extracts

Some Indian medicinal herbs and extracts are sold as additives and used off-label, while others are marketed as supplements. Products are consistently enriched to meet buyers' requirements. However, European importers often demand tests that are not always available in India, requiring samples to be sent to laboratories in Germany, which makes the process costly for MSME exporters.

SHEFEXIL works closely with FSSAI, the Indian equivalent of the EFSA, to ensure compliance with food safety and standards at all times. Nutraceuticals in ingredient form (ANI, equivalent to API in pharmaceuticals) are exported in bulk and subjected to rigorous quality control tests. The final formulation is typically manufactured in the importing countries, with a majority of importers located in developed nations such as the EU, USA, and Japan, all of which are aware of the stringent control measures adopted by India.

Utmost care is taken to maintain quality standards, as these ingredients are used for manufacturing formulations and are ultimately sold as end-use products like capsules, gummies, and tablets. These end-use formulations are referred to as dietary supplements, food supplements, or Nutraceuticals, depending on the importing country's nomenclature and legal terminology.

SHEFEXIL members are primarily engaged in exporting food supplements containing botanical extracts, isolates, and purified chemical compounds. The global market for botanical-based supplements is estimated at USD 30 billion, with the USA accounting for USD 12 billion, and the EU and Japan together accounting for another USD 12 billion. Currently, India exports over USD 1 billion in Nutraceutical ingredients, and this figure is set to grow significantly in the near future. The product-wise export trend is illustrated in Figure 1.

SHEFEXIL has implemented all necessary measures to ensure importers receive the best quality products. It collaborates with reputed testing laboratories and scientific institutions in India to facilitate the export of value-added agri-products with superior quality. The goal is to offer products with unmatched quality at competitive prices, gaining worldwide recognition and establishing India as a reliable supplier of high-quality export products