New Delhi, Aug 29 (IANS): In a bid to tap the $1-billion nutraceutical market in India products that combine the benefits of nutrition with pharmaceuticals two Japanese firms are entering India, promising pills to help you keep you young and healthy.
Kaneka Corporation and Hydride Ion Corporation have entered into a pact with Indian pharmaceuticals firm Generix Lifesciences to sell such food supplement pills and other such feel good products in the country, officials said.
"One capsule a day will enhance the overall quality of life,said Ramesh Rajan, director of Genlife. Nutraceuticals make people feel good and live healthy and longer, without any side effects," Rajan told IANS.
Delhi-based Generix Lifesciences has formed a unit called Genlife to market these nutraceutical and food supplement products and promote their use with the help of their Japanese partners.
Initially the company will focus on popularising the use of food supplement pills in Delhi and the National Capital Region and then would gradually move to other major cities across the country.
"In the medium term, our plan is to import just the ingredients and manufacture the products in India. It will reduce the cost significantly," said Sandeep Jha, director at Genlife, adding the products would be repackage at their factory in Roorkee.
Officials explained that globally, the nutraceuticals market is valued at $124 billion and was expected to touch $225 billion by the end of this decade, with the US, Europe and Japan accounting for over 80 percent of the market share.
In India, Rajan said, the nutraceutical supplement market is currently estimated at around $1 billion, including the unorganised sector. "The market size is expected to touch $8 billion by 2020.
Speaking to IANS, Isao Otsu, managing director of Kaneka in India, said the company foresees a huge potential in India. A Japanese conglomerate, Kaneka Corp reported a $5.6-billion revenue last year and plans to open manufacturing units in India.
Rajan said among the reasons for low use nutraceuticals in India was the lack of availability and high cost. "Customs duty is 70 percent. Then you have 12.5 percent as value added tax. All this put together makes almost half the cost," he said.
For example, one nutraceutical capsule currently costs around Rs.80-120, but prices can be reduced by 30-40 percent with economics of scale and if the taxes and duties are reasonable. These products are not hurting any domestic industry.