Parry Nutraceuticals, a division of Murugappa group firm EID Parry (India) Ltd, has entered into the Over The Counter (OTC) market by launching two protein drink products. It has identified OTC as a key business focus area and plans to launch around 25 products in the segment in next three years, according to company executives.
The company, today, launched two premium protein drinks, Pro 9 and Pro 9 D, targeting high class and higher end of middle class population in metros and tier-1 cities. Pro 9 protein powder is a combination of 21 essential vitamins and minerals with whey protein, while Pro 9 D is a sugar-free protein powder with fenugreek soluble fibres for regulation of blood sugar level in diabetics.
The products would be launched in south India immediately and would enter Mumbai, Ahmedabad and National Capital Region (NCR) by the end of the year, said Sajiv K Menon, business head bio and nutraceuticals, EID Parry (India) Ltd. It would reach almost every city and metro by the middle of next year. The pan-India presence would be accomplished in next two years, he added.
It expects to have a reach to 15,000 outlets including retail chemists and organised chain retail outlets in the first year of marketing.
"With launch of the two products, we are entering into the OTC segment, of around Rs 10,000 crore market growing at 18 per cent per annum. We will be launching 25 products, with scientific backing, in the segment in next three years," he said.
It is aiming at 8-10 per cent of the Rs 350 crore protein drinks market with the two products launched today and expects Rs 45-50 crore in the first year of marketing. At present, plans are to market the OTC products only in the domestic market. The company is outsourcing manufacturing of the OTC products.
The company would focus on developing products in immunity boosting, eye health, weight management, joint mobility, cholesterol management, diabetic supplement and stress management segments. The immunity, eye health and joint health management products would be launched in next 12 months, said R Ezhil Arasan, senior business advisor HO, Parry Nutraceuticals.
The OTC range would have three sub-categories, Parry's Active Care targeting general health and wellness, Parry's Health Care focusing on specific health conditions like diabetes, lever disease and immunity and Parry's Body Care, catering the cosmeceutical segment.
The company has been into manufacturing and supply of natural micro algae ingredients including organic Spirulina, beta carotinin, lycopene and astaxanthin to finished products manufacturers and brand owners, for past 35 years.
Expansion plans
Parry Nutraceuticals would invest Rs 50-100 crore in two greenfield projects, to expand its facilities for cultivation and extraction of micro and marine algae, said Menon.
It would set up a facility for marine algae cultivation and extraction for beta carotin, a Vitamin A source, in an area of around 165 acres in the coastal area of Ramanathapuram district in Tamil Nadu. It would also double its capacity for Lycopene cultivation, extraction and processing.
"We have not finalised the investment for Ramanathapuram project. Again, we have not decided the location for Lycopene facility. The investment would be in the range of Rs 50-100 crore for the projects, depending on the final plan," said Menon.
Natural lycopene is an antioxidant compound giving the colour to vegetables like tomatoes, which has characteristics to protect against prostate cancer. The company has a manufacturing capacity of 12 tonne of lycopene per annum at present and plans to increase it to 24 tonne per annum through expansion.
