The $4.4-billion Murugappa Group’s Parry Nutraceuticals is looking for for acquisitions to strengthen its over-the-counter (OTC) nutritional supplements business.
Nutraceuticals are dietary supplements which are generally used to fill nutritional deficiencies in food and to prevent diseases.
“We are on the look-out for acquisitions. It will be for brand, product and distribution infrastructure in both domestic and international markets,” said Sajiv K Menon, business head, Parry Nutraceuticals.
Earlier, the company had made a few acquisitions including the buyout of the US-based Valensa Interna-tional in 2008. The US subsidiary offers a range of branded ingredients and formulations including Astaxanthin, Spirulina, Saw Palmetto extracts and a range of seed extracts and the newly formulated krill product.
The acquisition provided an opportunity for Parry to move up the value chain by producing formulations and marketing opportunities in the US and across the world. “We are now in all three key areas – production, formulation and creating brands to reach,” said Menon.
On the domestic front, the company said it would leverage Parry’s brand to address the Rs 9,000-crore market.
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The company, which got 10 products in the offering, said it would launch seven more brands and two variants of Spirulina. “We are also planning to have collaboration with an international player, who will help the company launch more products for the domestic market”.
Some of the companies in Europe and the US have around 300 products, which can be brought to India immediately, said Menon.
Recently, the company launched Green T6 capsules, which offer green tea extracts in capsule form. The company claims it is the first of its kind in the country. The launch is part of company’s effort to capture the OTC segment in a big way.
“By the end of the current fiscal, we will launch new products targeting eye health, heart health, diabetes, joint health, energy enhancement and others. There will also be two more variants of its Spirulina, the marine algae-based product,” said Menon.
The launches will support the company’s target of Rs 300 crore over turnover in the next three years. “We are hopeful to achieve our target. This year, the division will close with Rs 100 crore turnover as compared to Rs 43 crore in 2011-12.”
The company is also in the process of strengthening its reach. At present, the company’s products are sold across 14,000 outlets in the country and it had set a target of 50,000 in the next 18 months, said Menon.