Mumbai, Sept 11: Global nutraceutical player OmniActive Health Technologies, which partners with farmers in Karnataka to grow marigold and paprika, is planning to explore other states like Maharashtra, Madhya Pradesh, and Tamil Nadu, for similar collaborations, a senior company executive said.
“While we are currently focused on Karnataka in partnerships with over 20,000 farmers to grow marigold and paprika from climate change and pests resistant hybrid seed developed by us, we are also exploring opportunities in other states.
“Karnataka’s climate is conducive for most of our products. Meanwhile, we are gradually expanding to other regions and have initiated agricultural efforts in Maharashtra, MP, and a smaller portion in Tamil Nadu,” OmniActive Health Technologies Executive Chairman and Managing Director Sanjaya Mariwala told PTI.
Further, the company is also considering expansion into a few more states for testing its hybrid seeds, including the northeast region, he said.
“It’s important to note, however, that we exercise caution when establishing plants in new areas. Significant investments will only be made after thoroughly assessing the economic viability of a specific zone,” he added.
The company extracts lutein from marigold and zeaxanthin from paprika, which are used in eye health supplementation.
When asked about expanding farmer partnership, Mariwala said, for Maharashtra or MP the company expects to engage with an additional 5,000-6,000 farmers in each state in the next three years.
“This expansion would encompass various crops. As the timeline extends to 5 years, this outreach might expand further,” he added.
In addition to marigold and paprika, OmniActive Health Technologies is also exploring the cultivation of its hybrid seed programme by including crops such as alpinia, galanga, blue ginger, ashwagandha and turmeric ginger, among others, said Mariwala.
He said, as research and development is the backbone of the company, OmniActive Health Technologies allocates about 8-10 per cent of its revenue for the same.
“Our primary objective is to enhance the quality and effectiveness of our current products, innovate new formulations, and explore emerging technologies that can elevate our offerings,” he noted.
Talking about the company’s business, Mariwala said, the company has 15-20 products mostly used by pharmaceuticals and FMCG companies for manufacturing health supplements.
“The majority of our business is derived from exports (90 per cent) to developed markets like the US, Europe, Japan, Taiwan and South Korea. We provide 15-20 products. The domestic market (10 per cent) is still very small. However, the India nutraceutical market is growing,” he said.
Nutraceutical industry in India is valued at approximately USD 10 billion, said Mariwala.
On exploring new markets, Mariwala said, the company has begun establishing a presence in China, the Middle East and the South Asian Association for Regional Cooperation (SAARC) countries.
“Given its complexity, the Chinese market demands a distinct strategy. Although our products’ available in China are relatively limited, we anticipate significant growth as we are allocating more resources to broaden our presence. Further, we are considering the potential for growth in the SAARC region and the Middle East, especially in light of the trade agreements recently established by India. In SAARC and the Middle we are looking at exporting finished products,” he added.
Talking about exploring to establish production units farming possibilities overseas, Mariwala told PTI that OmniActive Health Technologies is looking at opportunities in Africa, South America, Thailand, and various parts of Southeast Asia.
“We are considering opportunities because as our business expands, it has become crucial to acknowledge the global phenomenon of climate change. The risks associated with climate change are substantial, and we must ensure no disturbance in the availability of the products to our customers. Moreover, relying solely on a single growing season exposes us to financial risks. If we can diversify geographically, we can mitigate some of this risk by spreading investments across different regions and crops,” he noted.
On revenue growth, Mariwala said the company is currently growing at 15-16 per cent and “if we maintain our current growth rate of 15-16 per cent, we expect to witness significant expansion in the next five years, supported by continuous R&D initiatives and product expansion efforts”.
“Our aim is to strategically target different products and market segments to establish leadership in those areas. If we maintain our current growth rate, which we intend to do, the next 5 years should see us achieve remarkable growth,” he stated. (PTI)
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