Fermenta Biotech expands plant-based Vitamin D3 capacity at Dahej plant

Dahej facility to begin commercial production in FY28; company targets nutraceuticals, functional foods and import substitution

Thane-based Fermenta Biotech, India’s only manufacturer of Vitamin D3 and among the world’s three largest producers, is expanding its plant-based Vitamin D3 capacity as more supplement and food brands seek vegetarian alternatives to conventional animal-derived Vitamin D3.

 

“The new Dahej capex is expected to be completed over the next nine to 12 months, with commercial production beginning in FY28,” Prashant Nagre, managing director of Fermenta Biotech, told Business Standard.

 

The expansion will create annual capacity of around one tonne of plant-based Vitamin D3 and 50 kg of Vitamin D3 derivatives, including calcifediol, alongside 75 kilolitres of fermentation capacity for green-chemistry enzymes.

   

Fermenta had earlier expanded its Vitamin D3 capacity at Dahej, including a 25 per cent increase in Vitamin D3 crystal capacity in 2021, although it has not disclosed the facility’s current total installed capacity.

 

The company’s ₹110 crore expansion programme covers plant-source Vitamin D3, Vitamin D3 derivatives and green-chemistry enzymes. Approximately ₹60 crore has been allocated to the combined capacity programme for plant-based Vitamin D3 and derivatives.

 

Fermenta developed VITADEE Green through a proprietary process after nearly a decade of research and development. The process upcycles an agricultural by-product to manufacture plant-source Vitamin D3, although the company has not disclosed the underlying botanical source.

 

Conventional Vitamin D3 is generally derived from lanolin, a wax obtained from sheep’s wool. This has created demand for plant-based alternatives among vegan and vegetarian consumers and brands seeking clean-label, traceable and sustainably sourced ingredients.

 

“Until now, brands seeking a vegetarian Vitamin D3 option have largely depended on expensive imports or used Vitamin D2,” Nagre said. VITADEE Green offers an India-made alternative that Fermenta says can be produced at scale and made more commercially accessible.

 

The new product is intended for dietary supplements, nutraceuticals, functional and fortified foods, and beverages. It can be supplied in powder and oil formats for products such as tablets, capsules, gummies, premixes, sprays and nutrition beverages.

 

At the formulation level, India’s plain Vitamin D3 60KIU market is estimated at ₹1,000-1,500 crore, within a broader vitamins and minerals segment of around ₹20,600 crore, according to Fermenta. Vitamin D consumption has grown at a double-digit rate over the past five years.

 

While the exceptional Covid-related rise in supplementation and inventory has normalised, demand remains above pre-pandemic levels, supported by preventive-health awareness, increased testing and new nutraceutical formats.

 

India remains significantly underpenetrated despite the widespread prevalence of low Vitamin D levels. Indoor lifestyles, reduced outdoor activity, air pollution, clothing practices, darker skin pigmentation, obesity and limited dietary sources can all contribute to low Vitamin D status.

 

Vitamin D is important for calcium absorption, bone mineralisation and normal muscle function. Severe deficiency can cause rickets, which leads to soft and deformed bones in children. In adults, it can cause osteomalacia, bone pain and muscle weakness.

 

Fermenta has begun customer qualification exercises across dietary supplements, functional foods and beverages, but has not disclosed binding purchase commitments or commercial orders. Revenue from the new capacity is expected to build progressively after commissioning as customer qualifications are completed and utilisation rises.

 

Human nutrition accounted for approximately 53 per cent of Fermenta’s FY26 consolidated revenue of ₹551 crore, while animal nutrition contributed around 20 per cent.

 

“Our ambition is not simply to capture share from conventional D3; it is to expand the category by enabling D3 in applications where animal-origin sourcing was previously a limitation,” Nagre said.