Private equity TA Associate-backed OmniActive Health Technologies Ltd is betting big on the growing nutraceutical market, which is pegged at $450 billion globally (Indian market: about $4-5 billion). The Mumbai-headquartered company which invest over 4 per cent of its revenue in R&D every year, is looking to double its revenue to Rs2,000 crore in the next 4-5 years. The company, which exports a majority of its production to the US, has two state-of-the-art R&D facilities located at Pune and Thane in Maharashtra.
It has an extensive product portfolio of scientifically validated, IP-protected branded specialty actives and an extensive portfolio of natural botanical actives for the dietary supplement, functional food, and beverage markets. The company has offices in Mumbai, and Bridgewater, New Jersey.
OmniActive has filed 95 patents and conducted 49 clinical trials, consolidating its leadership in product safety, efficacy, and innovation. The Department of Scientific & Industrial Research-recognised R&D facilities develop extraction, isolation and purification capabilities for nutritional bio-actives. The company’s development plans include making dietary supplements more effective with leading scientific and quality profiles.
OmniActive is globally recognised for creating differentiated, superior and cost-effective products that boost health and well-being. The company, founded in 2005, focusses on rare, safe and quality ingredients, which enable its products to stand out. Driven by innovation, the company follows novel methods of encapsulation that improve ingredient solubility, stability and bio-availability. The company has already launched 14 products in the market, which has been growing at 9-10 per cent every year.
“At OmniActive, we constantly look at newer ingredients and methodologies. We are also expanding our capabilities with a high-end instrument testing lab to enhance the seamless transfer of knowledge from lab to commercial production, accelerating new product launches,” says Sanjaya Mariwala, executive chairman & managing director, OmniActive. “With a focus on traceability, control, and cost-efficient strategies, we ensure the highest standards of quality and compliance across our processes”.
High-end instruments
OmniActive’s strengths lie in its ability to leverage science and technology to meet the demands of consumers. The company has established advanced systems, including a full-fledged analytical laboratory with high-end instruments that comply with 21 CFR part 11 standards. It also uses DNA and HPTLC fingerprinting for botanical identification and conducts systematic stability studies to determine product shelf life. These measures ensure the highest quality and compliance across the manufacturing process
While the government of India has made commendable efforts in driving innovation, these initiatives have primarily centred on public sector enterprises. It is essential to extend this focus to private sector companies, which have demonstrated their capabilities at various stages. “Private companies are significantly contributing to the country’s innovation,” says Mariwala, commenting on this issue. “The government should leverage their capabilities to boost our achievements to showcase India’s strengths globally. The private sector plays a defining role in India’s growth story and deserves more recognition for building Swasth Bharat.”
Despite significant advancements in the nutraceutical sector, the industry faces challenges that hinder its growth. One major issue is the lack of robust support and incentives from regulatory bodies to promote investments in R&D by the private entities. India’s gross expenditure on research & development (GERD) was only 0.6 per cent of the GDP in 2022 – significantly lower than the global average of 1.8 per cent. The Economic Survey 2023-24 emphasises this concern, revealing that, although nearly one lakh patents were granted in 2023-24, private sector participation remains low, accounting for just 36.4 per cent of the country’s GERD.
“The government should collaborate with the industry to create laws and regulations that support R&D and sector growth, rather than complicating processes with bureaucratic hurdles,” adds Mariwala. “Additionally, incentivising private sector involvement in R&D will transform India’s innovation ecosystem to a business environment conducive to attracting investments. This stable framework will foster groundbreaking research that positions India prominently in global markets”.
In India, the dietary supplements market, valued at $5-6 billion, is on track to reach $9-10 by 2027. Factors like the growing geriatric population, the shift from pharmaceuticals to nutraceuticals and the focus on personalised nutrition drive this growth.
Today, the Indian market imports more than it exports. Domestic demand has seen significant growth over the past 4-5 years, driven by the prevalence of lifestyle diseases and the growth of consumer awareness for preventative health and fitness. The future looks promising for the industry, as more companies invest in product technology, build brands and influence consumption habits among consumers.