Seeing a sharp rise in the demand for its suite of nutraceutical products post the Covid-19 outbreak, Bengaluru based Juggat Pharma will be investing Rs 60 crore in two new manufacturing units in FY22 to scale up production in Uttar Pradesh and Madhya Pradesh. The company is part of the over 50-year-old Jagdale Industries.
Its flagship product Mulmina, an antioxidant-rich immune boosting drink, has seen traction of over 150 per cent since April.
“This product was launched in 2018, and because we were one of the first players who were in the market, we had the first mover advantage and we have seen a huge traction for the product from April,” said Rajesh Jagdale, managing director of Jagdale Industries. Priced at Rs 30, it is currently available in two flavours - mango and orange - and is sold on prescription.
While the company will have separate lines for its nutraceutical products at the two new factories, it will also have tetrapak packaging lines for environment friendly packaging. The company currently has five manufacturing plants, one each for pharmaceutical, nutraceutical and ayurvedic products, and two others for tetrapak packaging.
The company's nutraceutical range has 6 products in the market and is ready with the launch of two more, including an anti-obesity drink made with fruit garcinia and another low sugar variant for the cardiac segment. The nutraceutical segment, which currently generates 20 per cent of the company’s total revenue, is expected to close FY21 with a total income of over Rs 100 crore. Last year, it was Rs 40 crore for the nutraceutical business.
“We are hoping the nutraceutical business will start generating 50 per cent of the company’s total revenue in the next two years, while the remaining 50 per cent will come from pharma products,” said Jagdale.
According to an Assocham report, the nutraceutical market is expected to grow $4 million in 2017 to $18 billion in 2025. A nutraceutical product is a food extract supplement which builds immunity, delays the ageing process or helps prevent chronic diseases.
The Bengaluru-headquartered Jagdale Industries will also be doubling down on investments in R&D which is currently 2 per cent of the company’s top line.