The healthcare industry in India is showing great progress. There has been considerable increase in spending on healthcare backed by the growing purchasing power of individuals. Moreover, with a lot of importance being given to preventive medication, the nutraceuticals market in India is set to flourish. It is one of the booming markets in India. Predominantly vitamins and minerals derived from oral pills were used for curing certain diseases and ailments. People today are becoming more prone to consume immunity enhancing food supplements and wellness related products. This is promoting the growth of the industry with players diversifying into production of various new varieties of products. Further assistance from the government and increasing demand from consumers will fuel growth in this market. The report begins with an introduction to the Indian nutraceuticals market and its classification on the basis of the ingredients and benefits incurred from them. This is followed by the market overview section which provides the market size and growth as well as the market share of the various segments in the market, namely, functional foods, dietary supplements and functional beverages. A detailed description of each segment in the market along with the dominant products in the particular category has also been provided. Focusing on one the major sub-segments, an overview of the probiotic market in India has been included. This segment has been highlighted owing to the fact that it is one of the most promising categories under the nutraceutical market and has huge growth potential in the near future with growing interests of players. The genesis of probiotics has been highlighted showing the types dominant in India and the key therapeutic benefits derived from them. This section also contains information regarding the market size and growth of probiotics in functional foods in India as well as the key segments and the active players in this space. This is followed by an analysis of the drivers leading to growth in the market. This includes increasing shift towards preventive therapies, increasing disposable income, increase in healthcare spending, increasing shift towards self-medication, changing demographics, growth in pharmacy and wellness related retail chains and favorable pricing environment. The key challenges to the market include lack of standardization, marketing and distribution challenges, high pricing and lack of awareness. Several trends have also been identified in the market and this has been provided in the next section. The key trends include fortified foods, ayurvedic nutraceuticals, foreign tie-ups, players educating consumers, encapsulation, and cosmeceuticals and nanoceuticals. A section on government regulations in the industry has also been included. It discusses the Food Safety and Standards Act 2006 that regulates the industry. The competition section provides an overview of the competitive landscape in the industry and

1. Nutraceuticals Market – India
March 2012

2. Executive Summary
Market valued at INR b bn in 2011 and is estimated to reach INR f bn in 2015
Market Comprises of three segments, dietary supplements, functional foods and functional beverages
India accounts for a mere m% of the total world market for nutraceuticals
Probiotics in India generally comes in two forms : Drugs and Packaged foods and beverages
Probiotic Major pharmaceuticals companies have become active in this space and are devising newer
Market drugs and products, however current drugs are predominant in the area of gastroenterology
Players are also devising packaged products like jellies, RTE cookies and smoothies
Drivers: Challenges:
–
–
E
Increasing shift towards preventive therapies
L
Increasing disposable income
–
–
Lack of standardization
High pricing
Drivers &
Challenges
–
–
–
MP
Increase in Healthcare Spending
Increasing shift towards self-medication
Changing Demographics
–
–
Lack of awareness
Marketing and distribution challenges
Trends
–
–
A
Growth in pharmacy and wellness related retail chains
S
Favorable pricing environment
Fortified foods
Ayurvedic nutraceuticals
Initiatives by players to educate consumers
Encapsulation
Foreign tie-ups Cosmeceuticals and Nanoceuticals
Major Public Players Major Private Players
Competition Company 1 Company 3 Company 5 Company 7
Company 2 Company 4 Company 6 Company 8
NUTRACEUTICALS MARKET IN INDIA 2012.PPT 2

3. •Introduction
•Market Overview
•Probiotic Market
•Drivers & Challenges
•Trends
•Government Regulations
•Competition
•Financial Transactions
•Key Developments
•Strategic Recommendations
•Appendix
NUTRACEUTICALS MARKET IN INDIA 2012.PPT 3

4. Increasing shift towards preventive therapies and increasing
disposable income has led to a growing market
Market Overview Market Size and Growth
• India accounts for only m% of the world INR bn
nutraceuticals market
250
• Nutraceuticals market in India is growing at a very f
200 x% e
fast pace and is expected to be almost double in 20-- d
150 c
from its size in 20-- a
b
100
• Increasing shift towards preventive therapies and
50
E
increasing disposable income is driving growth in this
sector 0
L
• Several pharmaceutical companies are entering this
P
space, realizing that nutraceutical products can be
2010 2011
Market Segmentation (2011)
2012e 2013e 2014e 2015e
M
supplementary products to their therapeutic
A
products
Segment 1 Segment 2
S
• There are more Indian players than multinationals in
the market as it is a relatively low technology section
compared to pharmaceuticals u
• Probiotics is one of the most emerging and nascent v Segment 2 can be further
segments in this market with increasing consumer divided into Segment 2a and
acceptance and greater player attention expected to Segment 2b
drive its growth
Source:
NUTRACEUTICALS MARKET IN INDIA 2012.PPT 4

5. Drivers & Challenges – Summary
Drivers
Increasing shift towards preventive
therapies
Challenges
Increasing disposable income Lack of standardisation
Increase in Healthcare Spending Marketing and distribution challenges
Increasing shift towards self- High pricing
medication
Changing Demographics Lack of awareness
Growth in pharmacy and wellness
related retail chains
Favorable pricing environment
NUTRACEUTICALS MARKET IN INDIA 2012.PPT 5

6. Trends – Summary
Fortified Foods
Ayurvedic Nutraceuticals
Foreign Tie-ups
Trends`
Players Educating Consumers
Encapsulation
Cosmeceuticals and Nanoceuticals
NUTRACEUTICALS MARKET IN INDIA 2012.PPT 6

7. Major Public Companies – Summary
Size of the Bubble represents Market Capitalization in INR bn
Net Profit
18
16
h
14
12
10
8
f
E
6
d
L
4 c
b
P
2
g
a
0
-2
-4
AM
S
-6
-8
-10 e
-12 Revenue
0 5 10 15 20 25 30 35 40 45 50 55 60 65 70 75 80 85 90 95 100 105
Company 1 Company 2 Company 3 Company 4 Company 5 Company 6 Company 7 Company 8
Source: Note: All figures are in INR mn for FY 2010
NUTRACEUTICALS MARKET IN INDIA 2012.PPT 7

8. Public: Domestic Company – Company 1
(1/3)
Company Information Offices and Centres – India
Corporate Address
Tel No.
Fax No.
Website
Year of Incorporation
L E
Ticker Symbol
Stock Exchange
MP
Products and Services
Category Products/Services SA Head Office
Segment 1 Product 1, Product2 Key People
Segment 2 Product 1, Product 2, Product 3
Name Designation
Segment 3 Product 1, Product 2, Product 3 Person A CEO & Executive Director
Product 1, Product 2, Product 3, Person B Chief Financial Officer
Segment 4
Product 4, Product 5
Person C Executive Director of Operations
Person D Company Secretary
Source: Company Website; Annual Reports; Databases
NUTRACEUTICALS MARKET IN INDIA 2012.PPT 8

9. Public: Domestic Company – Company 1
(2/3)
Financial Snapshot Key Ratios
Total Income Net Profit / Loss y-o-y change
Particulars 2011 2010 2009 2008
INR bn INR bn (2011-10)
d2
50 c2 6 Profitability Ratios
40 b2 Operating Margin
a2 4 Net Margin
30
Profit Before Tax Margin
20 c1 d1
b1 2 Return on Equity
10 a1
Return on Capital Employed
0 0 Return on Working Capital
2008 2009 2010 2011 Return on Assets
E
Financial Summary Return on Fixed Assets
Cost Ratios
PL
• The company incurred a net profit/net loss of INR X mn in FY 20XX,
as compared to net profit/net loss of INR Y mn in FY 20YY
• The company reported total Income of INR XX mn in FY 20XX,
Operating costs (% of Sales)
Administration costs (% of
Sales)
M
registering an increase/decrease of X per cent over FY 20YY Interest costs (% of Sales)
Liquidity Ratios
A
• The company earned an operating margin of X.X per cent in FY 20XX
Current Ratio
an increase/decrease of X.X percentage points over FY 20YY
Cash Ratio
increase/decrease of X.X per cent over FY 20YY
Key Financial Performance Indicators
Indicators
S
• The company reported debt to equity ratio of X.XX in FY 20XX, an
Value (dd/mm/yyyy)
Leverage Ratios
Debt to Equity Ratio
Debt to Capital Ratio
Interest Coverage Ratio
Efficiency Ratios
Market Capitalization (INR) Fixed Asset Turnover
Asset Turnover
Total Enterprise Value (INR)
Current Asset Turnover
EPS (INR) Working Capital Turnover
PE Ratio (Absolute) Capital Employed Turnover
Source: Annual Reports; Netscribes Analysis; Databases Improved Decline
NUTRACEUTICALS MARKET IN INDIA 2012.PPT 9

10. Public: Domestic Company – Company 1
(3/3)
Key Business Segments Key Geographic Segments
Segment 1 Segment 3 Segment 5 Country 1
Segment 2 Segment 4
100%
Country 1 is the only
a1% a2% a3% a4% geographic segment in which
Company 1 has been
c1% c2% c3% c4%
e1% e2% e3% e4%
operating for the last four
b1% b2% b3% b4% years
d1% d2% d3% d4%
E
2008 2009 2010 2011 2011
Business Highlights
PL
Description
AM News
• Has 3 major strategic business units, namely, Business Unit 1, Business Unit 2 and
Overview
S
Business Unit 3
• Markets its products in over 60 countries
• Has 50 C&F agents, more than 5000 distributors and over 2.8 mn retail outlets in Country
1
• Its nutrition product range includes products such as Product 1, Product 2 and Product 3
Nutraceutical Business
• Is setting up a manufacturing plant in Country 2 to manufacture Product 3
Source: Company Website; Netscribes Analysis; Databases
NUTRACEUTICALS MARKET IN INDIA 2012.PPT 10

11. Thank you for the attention
The Nutraceuticals Market – India report is part of Research on India’s Healthcare Industry
Series.
For more detailed information or customized research requirements please contact:
Tamojit Roy
Phone: +91 33 4064 6215
E-Mail: tamojit.roy@netscribes.com
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