ENTERING THE NUTRACEUTICAL INDUSTRY

After establishing its base as a major producer of natural beauty and other fmcg products EMAMI now wants to foray into the nutraceutical industry

CURRENT MARKET SCENARIO AND COMPETITORS
Nutraceutical, a term combining the words ³nutrition´ and ³pharmaceutical´, is a food or food product that provides health and medical benefits, including the prevention and treatment of disease. A nutraceutical is demonstrated to have a physiological benefit or provi de protection against chronic disease. Such products may range from isolated nutrients, dietary supplements and specific diets to genetically engineered foods, herbal products, and processed foods such as cereals, soups, and beverages Global nutraceuticals market as per Cygnus estimates in 2007 was over $120 billion and it was growing at a compound annual growth rate (CAGR) of 6.8%. ³Right now, the global market is dominated by the US having a market share of 36% followed by European market having 24% share and Asia with 30%, whereas rest of the world has 10% of market share. In the Asian continent, Japan sweeps the market share by 22% of the global market, whereas remaining 8% share is among other Asian countries. Some of the major players worldwide include Monsanto, American Home Products, Dupont, Abbott Laboratories, Warner-Lambert, Johnson & Johnson, Novartis, Metabolex, Genzyme Transgenic, PPL Therapeutics, and Interneuron .

CLASSIFICATION
These products can be broadly classified into the following sub types:

Dietary supplements: They are products that contain nutrients derived from food products that are
concentrated in liquid or capsule form. The "dietary ingredients" in these products may include: vitamins, minerals, herbs or other botanicals, amino acids, and substances such as enzymes, organ tissues.

Functional foods : Functional foods are designed to allow consumers to eat enriched foods close to their
natural state, rather than by taking dietary supplements manufactured in liquid or capsule form. Functional foods have been either enriched or fortified, a process called nutrification.

Medical foods : Medical foods aren¶t available as an over-the-counter product to consumers. They are
generally formulated to be consumed or administered internally under the supervision of a physician, and which is intended for the specific dietary management of a disease .

THE INDIAN PICTURE
Currently, the domestic market for nutraceutical is around Rs 4,400 crore, which is just 0.9% of the total global business in the category.

the major share is held by food supplements like sweetener. amla. The Indian market is composed of food supplements and vitamins and mineral supplements. Surveys can be conducted using questionnaires and analysis can be done to segment the market. malted beverages. ROADMAP TO LAUNCH After a thorough analysis of the current m arket the consumer expectations from these products can be obtained. Complan.500 crore. protein powder. psyillum. In health food ingredients. paediatric nutrition. fish oil and brahmi have been used over the years for various treatments across the length and breadth of India. tulsi. meal replacer etc. Emami has a huge potential to enter this segment because of its association with natural products as Nutraceutical ayurvedic products like neem. . A suitable place to start could be medical stores and monitoring over the counter sales of products. Proper positioning would be of utmost importance while carrying out this scheme of things. Traditionally these products have been targeted at the aging population wh o start having various health problems but recently a shift has occurred as companies try to focus on the working segment of India. Yuvraj Singh endorsing Revital for RANBAXY is a nice example. Then a particular segment can be chosen (which should be in line with the company¶s core competencies) to be targeted and appropriate promotional campaigns have to be launched. The growth in the nutraceutical products business will be fuelled mainly because of the changing lifestyle and increasing awareness about nutritional suppleme nts. Bournvita.However India¶s nutritional supplement market is expected to more than double in the next four years at over Rs 9. Boost and Red Bull). Food supplements include food products and supplements. The next major pie is held by malted beverages (Horlicks.