Could you give an insight into your journey in the nutraceutical industry and the genesis of OmniActive Health Technologies?

That is an interesting question. I used to run a different company within my family called Mane Kancor Ingredients Limited. We dealt with food ingredients, such as spices, extracts, menthol, and essential oils, and exported them worldwide. However, I realised that this business wasn't my creation; it was inherited. I wanted to establish my entrepreneurial legacy, something designed and envisioned by me.

Secondly, I observed that the food business, while profitable, lacked innovation. It primarily focused on generating profits without addressing consumer needs or pursuing a visionary mission. So, I sought areas where my knowledge of natural products could be applied—personal care and healthcare. We chose healthcare because it represented a new-age industry with room for innovation, aligning with our vision. In contrast, personal care was traditionally dominated by French companies, making it difficult for newcomers like us.

Preventive care science was deep-rooted in India, however, like many other things, people remained under Western influence and were more focused on research and innovations happening in synthetic chemistry. What was unfolding on the other side was the keen interest of the Western world in the Indian heritage of Yoga and Ayurveda. There was a steady rise in wellness tourism - people either coming for their treatments or coming to study the subjects. Together with this, the internet was picking up and millennials were becoming more global, better aware, and well read about various options available worldwide.

These were enough indicators to begin the journey in the nutraceutical space. Thus, we embarked on our journey into healthcare, and the rest is history.          

It seems the traits of entrepreneurship were always part of you, leading you to seek new paths…

Indeed. Entrepreneurship is about constantly seeking the next challenge and asking, "What's next?" I spent around 20-24 years in the food ingredients business, making it successful. However, I felt the need to do something new and innovative.

What are the growth prospects for the international trade of nutraceutical products?

The nutraceutical sector is growing at roughly 9-10 per cent, which is one of the highest across the industries. Many countries are joining the nutraceutical bandwagon. Those who have evolved like India are growing at 15-17 per cent p.a. and other countries like Europe, and Japan, are growing at 7-8 per cent p.a. Given its ancient Ayurvedic wisdom, in-depth pharmaceuticals knowledge and favourable agriculture base, India enjoys a natural advantage in this sector. Despite more than 50 per cent of the products currently getting exported from India, we are still at only 1-2 per cent of the global trade.

There are 4 different segments in which the industry can be divided. Cultivation of botanicals and raw materials, raw material processing, ingredient manufacturing (APIs), and OTC products and formulations for consumption. We are largely present in the first two, with a limited presence in the ingredient space and a negligible share in the final products. There is a need to add more value-added products to the export basket. Today 90 per cent of the API production is exported, however, the overall API segment itself is very small in India. If we expand just the API segment, there is tremendous potential to increase our share in the international market.

On the demand side, domestic demand itself is increasing steadily. I also expect populous markets like Indonesia, Vietnam, Bangladesh, and Malaysia to present new growth opportunities. The disposable income in these countries is growing steadily and people are likely to start adopting nutraceutical products as their daily fulfilment needs.

As the founder of OmniActive Health Technologies, what role does the company play in the nutraceutical industry? The nutraceutical industry in India is niche, and you have become a pioneer, expanding globally. How are you planning to grow within India?

OmniActive Health Technologies Ltd was established with a clear purpose "to improve lives by enhancing nutrition and wellness and leveraging the most innovative science and technology to meet consumers' demands while adhering to the highest scientific standards of quality."

Our approach involves several facets. Firstly, the nutraceutical industry requires innovation in science and technology to meet consumer needs. We aim to bridge this gap by combining science and technology to create products that offer real value to consumers.

Regarding the idea of extracting medicinal compounds from flowers, we conducted extensive research before entering the business. We formed a team that scoured databases and global research for natural products with medicinal and nutritional properties. We observed that Japan and the US were at the forefront of natural product research for nutritional purposes. This led us to believe that this trend would shape the future of healthcare.

We decided to not only provide content to supplement makers but also manufacture supplements for the Indian market. We supply bulk ingredients to international companies, but we also focus on branded ingredients, a concept we introduced in the industry.

Currently, our products serve five categories - i) Active wellness and physical performance, ii) metabolic health and weight wellness, iii) vision, cognition, and mental wellness, iv) daily energy and productivity performance and v) specifications speciality extracts. Research & Development is the backbone of everything we produce. Our global R&D centre leads product development, setting the standard for ingredient and extract excellence; focused on developing new products and methods of delivery, isolating new plant bioactive, and establishing novel analytical measures for differentiation and purity.

Today, OmniActive holds 38 patents, has applied for 60 more, and derives 99 per cent of its revenues from exports. In addition, it also boasts heavyweight customers like Pennsylvania-based health and nutrition-related product manufacturer such as GNC, direct-seller of dietary supplements Amway, specialised eye care company Bausch and Lomb, and mass market giants Costco and Sam's club and many other innovative companies that have launched interesting products and platforms in the nutritional space.

Setting up manufacturing units for extracting active compounds from flowers can be challenging. How did you start this process, and how did you manage initial investments and talent acquisition?

Starting something new is always challenging, but you must begin somewhere. We carefully planned the next three years, outlining what the company would look like, the necessary talent, and the processes. We began with a small team, doing everything ourselves.

We also investigated improving processes continually. The advantage of natural products is that you can enhance efficiency at every step. We focused on improving yields, active content, and processing conditions. We collaborated with farmers, creating clusters for more efficient production.

We have made substantial investments in expanding our capacities. Last year, we spent around $150 million on plant and equipment. Additionally, we allocate about 8-9 per cent of our revenue to R&D, covering clinical studies and research.

Talent acquisition and skill development are crucial for growth. How do you address these challenges in your workforce?

Identifying and retaining skilled individuals is indeed a challenge. We needed both -pharmaceutical and natural product expertise. It took time to convince pharmaceutical experts to transition to the nutraceutical field. We had to sell them on the concept. Once we demonstrated success, more experts joined us. We believe in challenging, providing opportunities, and exposure to our employees, allowing them to grow and excel.

You are also the founder of AHNMI. What was the motivation behind establishing this association, and what role does it play in the industry?

The Association of Herbal and Nutraceutical Manufacturers of India (AHNMI) was formed to create an industry body similar to NASDAQ. We aimed to focus on policy advocacy, consumer education, interfacing with regulators, and establishing self-imposed industry regulations. Currently, we are primarily engaged in lobbying with the government. The sector is not yet well-organised, but we are working to change that.

What is your international expansion strategy, and which markets are you targeting apart from the US?

Our primary focus has been the USA, but we are now looking at expanding in Asia, particularly Japan, Korea, Taiwan, China, Australia, and New Zealand. India has potential as well, and we aim to support Indian companies wanting to enter the global market.

Exporting to international markets involves meeting stringent standards and regulations. How do you ensure your products comply with these standards?

We have a robust regulatory practice that includes teams in both the US and India. Before entering any market, we thoroughly study and understand its standards and regulations. We design our products to meet these requirements and ensure compliance through rigorous processes.

Lastly, what drives you to excel in your professional role as a visionary leader?

Entrepreneurship is in my blood, and I believe in constantly seeking the next challenge. My purpose is to improve the lives of everyone connected with our company - whether it's our customers, employees, or the farming communities we work with. We aim to bring positive change to people's lives.