International Flavors and Fragrances’ new facility in India
On January 23, 2018, International Flavors and Fragrances (IFF) announced that it had broken ground for a new plant in Sri City. The plant will be built on 32 acres and will be the biggest plant in India and Greater Asia. The facility is expected to serve India and other countries in the region. The plant is expected to be completed by December 2019.
Andreas Fibig, IFF’s chair and CEO, said, “In this economically vibrant country, it is critical that we invest to provide our customers with winning tastes and scents. This new facility is fitted with capabilities tailored for our customers’ needs. Coupled with our excellent consumer insights teams and their deep understanding of the local markets, we are well-positioned to live up to our promise to be our customers’ partner of choice.”
Update on IFF’s stock price
IFF stock declined by 1.1% in the week ended January 26, 2018, and closed at $153.49. Despite the decline, the stock continued to trade above the 100-day moving average price of $149.61, indicating an upward trend in the stock. As of January 23, IFF’s short interest as a percentage of outstanding shares was reported at 1.5% as compared to 1.4% at the end of December, indicating that the bearish sentiment on the stock has increased marginally. IFF’s 14-day RSI is at 49, indicating that the stock is neither overbought nor oversold.
Investors can indirectly hold IFF by investing in the Vanguard Materials ETF (VAW), which invests 1.2% of its portfolio in IFF. In contrast, VAW rose 1.1% for the week. The fund also provides exposure to Monsanto (MON), LyondellBasell (LYB), and Air Products and Chemicals (APD), which have weights of 5.4%, 4.1%, and 3.7%, respectively, as of January 26, 2018.