Sagar Awatade, founder of the Indian oral care brand Oracura, has publicly shared a critical challenge threatening his company's existence: a significant customs duty demand and associated penalties. This dispute, involving tens of crores, puts the decade-old venture at risk of closure.
Oracura's Journey from India to Global Markets
Awatade started Oracura in 2014 with the vision of building a homegrown brand in a market dominated by international giants. Unlike competitors, Oracura focused on manufacturing parts for its electric toothbrushes in India. The brand successfully expanded internationally, selling in the US, Dubai, Nepal, Malaysia, and South Africa, and representing India at global trade fairs.
The Customs Dispute That Could End It All
The crisis began in 2023 when Oracura changed the import code for its products. Awatade asserts this change was transparent, declared for every shipment, and based on professional advice and international market practices. Despite this, customs authorities have now issued a demand for duty recovery and penalties, including personal penalties on founders and employees.
Awatade states that the demanded sum is insurmountable for a company of Oracura's size, effectively meaning "this ends us." The financial burden, coupled with the ongoing legal process, has made the last few months particularly challenging for the business.
Plea for Fair Treatment Amidst Legal Battles
Oracura has actively engaged with the authorities, writing letters, meeting officials, and even filing a writ petition in the High Court. Awatade's plea is for fair treatment, urging the system to support honest founders striving for global competitiveness rather than breaking them. He emphasizes that while processes are necessary, they should not feel like punishment.
Entrepreneurial Spirit and Past Struggles
Awatade's journey with Oracura has been marked by significant personal investment and risk. He previously mortgaged his home and office to fund the brand's growth, investing in inventory, new products, and hiring, despite family skepticism. His dedication has seen Oracura rise to become one of the top three oral care brands on Amazon India.