Indian founder built a brand to rival global giants. Now faces a customs duty demand that could end it all

Sagar Awatade, the founder of oral care brand Oracura, took to social media to share his struggle. In a long post on X, he said that even though every day is a struggle for young businesses, the last few months have been especially hard for his company. 

"We are a small Indian company. For more than ten years, we have been building a homegrown brand in a product category dominated by big foreign players. There are almost no Indian names in this space. We set out to be one," he wrote. 

Recounting his journey as an entrepreneur, Awatade said that he started working on the brand in 2014. He said that Oracura began making parts for its electric toothbrushes in India instead of simply importing like other brands. 

Sagar further noted that Oracura started selling in the US, Dubai, Nepal, Malaysia, and South Africa and also showed up at global trade fairs to represent an Indian brand globally. 

He said that all was going fine till following this one Customs rule upended their trajectory. 

"In 2023, we changed the import code we use for our product. We did not do this quietly. Every shipment was declared. Nothing was hidden. We didn't invent our approach. We followed written professional advice and the way this product is treated in markets around the world." 

Awatade added that as a result of fulfilling the Customs' demand, his company is faced with duty recovery and penalties, combined with personal penalties on founders and an employee worth tens of crores. 

"For a company our size, this is not a fine we can pay and move on from. This ends us." Furthermore, the entrepreneur said that his team has written to the authorities, met officials in person, and even filed a writ in the High Court, adding that they are only asking for fair treatment. 

"I set out to build in India and sell to the world. I am asking only that the system back honest founders trying to compete globally, instead of breaking them. The process is the process, and it exists for a reason. But the process should not feel like punishment. From where I am standing today, it does," he signed off. 

The journey to start the brand was not all that easy for Sagar Awatade. In another post, Awatade shared how he started the oral healthcare brand. He said that he mortgaged his home and office to start the brand. 

"My family thought I had lost my mind. The money went into inventory, new products, and hiring. Nothing was guaranteed." But, the returns are nothing less than spectacular for Awatade and his team as Oracura is among the top 3 oral care brands on Amazon India.