Tuesday, August 14, 2018
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Make in India – Nutra

R. B. Smarta

The main aim of Make in India Campaign for nutraceuticals is to create a substantial market share in the world for nutraceuticals. The way we understand Make in India is that the companies in India (with respect to nutraceuticals and functional foods) Manufacture with Quality, Provide and Create Employment for our people and Facilitate India’s Export Business. If we deliberate on these three areas we will be able to make the most of Make in India for nutraceuticals.

The concept of Make in India is very important because after working as per this concept we will be investing in India itself, creating jobs, talent pools here in India as well as providing quality products to our local markets. It is easier for the Indian companies to manufacture, do research and innovation in India due to reasons such as abundant availability of raw material, priority sector status for agro-processing given by the central Government, vast domestic market etc. In the nutraceuticals sector priorities can be decided and worked upon in two different areas:

1.Nutraceutical Ingredients and Formulations and 2. Food Processing

Make in India: Nutraceuticals Ingredients & Formulations

Manufacturing in India is one of the key aspects of Make in India. This is due to the fact that when we start manufacturing in India the entire ecosystem gets enriched right from the farmers, raw material providers, processors, manufacturers, local workers (working in the manufacturing plant). India is rich in natural as well as other forms of resources required for development and formulation of nutraceuticals. We have a heritage of resources in terms of Agriculture, Medicinal plants, Raw materials, Cost effective materials and Good manufacturing facilities.

India has the potential to become a manufacturing hub for nutraceutical and allied products and the recent increase and improvement in energy availability and costs will further aid in this. India has already been well established and positioned as one of the major suppliers of raw materials, plant extracts etc. in the world for use in finished product manufacturing.

Active Nutraceutical Ingredients (ANIs) in India

The Active Nutraceutical Ingredient’s Market in India although not organized, is very huge. India is very active in the export of nutraceutical ingredients for the past many years. Indian export of herbs, medicinal plants, raw materials and plant based products is very big. In 2013 India’s export (in terms of value) of Ayurvedic products, Medicinal herbs and their value added products was around USD 395.58 million. The demand for Indian herbal and medicinal ingredients and products is increasing in the European market as well. India’s export of herbs and herbal medicines to the European Union for the year 2012-13 was around USD 38.52 million and has grown since previous year at a rate of 11%.

We are already aware that India is ahead in export of ingredients and raw materials, but along with exporting of raw materials we should now focus on manufacturing and exporting of high quality finished nutraceutical products and formulations in order to help Indian nutraceuticals sector grow further and make the most of Make in India initiative.

Many Indian companies have already made their mark on global front in the area of ingredients, raw materials and formulations.

The above mentioned companies have been manufacturing their products (ingredients and finished formulations) in India and exporting them across world and making a mark in the world.

Make in India: Food processing and nutraceutical sector

The food processing and nutraceuticals industry is growing at a steady pace for past few years. In line with the Government’s Make in India concept, the food processing ministry has already taken initiatives in this regards to further promote growth of food processing industry.

India has greater access to diverse raw materials such as fruits and vegetables along with herbal and medicinal plants. This, together with the changes in life style, rising income levels, increased urbanization and positive government support can garner a good potential for expansion of fruit and vegetable processing industry in the country. The nutraceutical as well as food industry should promote establishment of more and more food and fruit processing plants in India instead of only exporting the raw materials. This will ensure more number of jobs for people in India.

As suggested by IASRI (Indian Agricultural Statistics Research Institute), the establishment of fruit processing units in rural sectors will aid in reducing the post-harvest losses, develop wide variety of value added products, and utilize by-products of food industry to improve the economic share of the cultivators, processors and nutritional status of Indian population.

The initiatives taken by the government to promote food processing facilities in India are that the ministry has informed that 100% Foreign Direct Investment (FDI) is permissible in food processing sector through automatic route except for items reserved for Micro and Small Enterprises (MSEs). During (Apr-Jan) 2014-15, the food processing sector attracted USD421.51 million FDI in the country. Food Processing is one of the priority sectors under ‘Make in India’ initiative. With respect to food processing industry the development of Mega Food Parks and cold storage infrastructures have already been initiated in India with the continuous efforts of government. This thought should be furthered and supported by the nutraceutical and food industry.

Manufacturing operations and processing plants across industries will not just significantly reduce the burden on the consumer in terms of price & availability, but also play an important role in driving the economy forward. Make in India has been initiated to attract investment in manufacturing and also creation of jobs helping boost economy. Industry must acknowledge the opportunity and see how investments can be made or increased in this sector.

Challenges in Make in India for Nutraceuticals

Some of the challenges that may pose themselves in the Make in India campaign for Nutraceuticals and allied products are as below:

1.High mark-up and market skimming practices.

2.One single legislation and specified authorities to regulate, manufacture, sale and distribution of nutraceuticals, functional foods and dietary supplements in India.

3.Lack of regulatory framework to validate health claims or any other product claims.

4.Inadequate investments in food & nutraceuticals research sectors.

5.Lack of adequate infrastructural facilities

6.Lack of adequate quality control and testing methods as per international standards

7.Unorganized distribution channels

8.Higher requirement of working capital

9.Poor linkage of research organizations and industry

These challenges could be overcome by collective efforts of Industry, Government, Associations, Policy makers and Stakeholders.

Future

In India we can observe that the nutraceuticals market is poised to grow in an exponential way. The market is currently growing at a CAGR of 17% and the market is pegged at USD 2.8 bn. Although we may witness this growth in nutraceutical market in the coming future, it may not necessarily translate into growth of Make in India. This is because, a major share of the growth can be attributed to foreign companies entering into Indian market with their nutraceutical products. This would help in getting foreign money in India, but this may not help achieve the aim of Make in India i.e. employment and skill development of Indian population. This aim can only be achieved when we start manufacturing finished products in India or when foreign players have their plant in India.

Built-in advantages of Make in India are quality indigenous ingredients and products, raw materials, cost structure benefits, high profits and eventually employment.

The Indian nutraceuticals industry should make a substantial share in the world’s nutraceuticals market through Make in India. Will Indianization of the raw materials and formulations for the world, help in achieving the agenda of Make in India? And is this Possible?

References

Source: Nuffoods Spectrum, Interview with Dr Muhammed Majeed, Shaheen Majeed

http://www.nuffoodsspectrum.in/inner_view_single_details.php?page=1&content_type=&vrtcl_panel_nm=&ele_id=NOR_5549e429174744.98211090

Processing of Horticultural Crops, IASRI, http://ecoursesonline.iasri.res.in/mod/page/view.php?id=110117

  1. Marichamy et. al., Science Park Research Journal, Vol-1, Issue-27, 23 January 2014, Sustainable development in exports of herbals & ayurveda, siddha, unani & homoeopathy (ayush) in India