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INTERVIEW

“Shefexil has many products that go into the nutraceuticals industry and there are synergies”

Monday, 10 May, 2021, 08 : 00 AM [IST]

Sanjay Mariwala has been instrumental in positioning India’s nutraceuticals industry on the global map. He is currently the executive chairman and MD, OmniActive Health Technologies Ltd, a company which has carved a niche as a leading supplier of naturally sourced ingredients for eye health, weight management, mental wellness and heart health to global nutraceuticals companies besides providing food supplements and nutritional fortification. He is also the founder president of the Association of Herbal and Nutraceuticals Manufacturers of India (AHNM).

In an exclusive interview with Shardul Nautiyal, Mariwala gives a lowdown on the global market and shares his India perspective on the nutraceuticals industry. Excerpts:

Where do you see the industry exponential growth, when it comes to the domestic and overseas market opportunities in the next 5 to 10 years?
Thrust on the healthcare industry in the Union Budget showcases how everyone, including the policymakers, have realised the shifting trends towards preventive healthcare and a healthy lifestyle. The industry, both globally and domestically, offers tremendous opportunities to grow. The industry players can leverage India’s chemistry expertise, pharma knowledge and natural medicinal plants base to develop relevant products. Investment in R&D to drive innovation, regularly collating feedback and inputs from consumers to bring product enhancements in sync with evolving lifestyle needs is necessary. Developing multiple sales channels, including Internet-based sellers, to increase product penetration and finally tap global opportunities through exports will be pivotal to the industry growth.

Estimates suggest that the Indian nutraceuticals industry can grow to become a US$50 billion industry in another decade. While the industry presents opportunities for exponential growth, it is important to proactively leverage them.

The pharma industry has demonstrated a pivotal transformation, given the current scenario where accessibility and affordability to enable the consumer is on the radar for public health issues. How do you see the potential of the nutraceuticals industry to optimise during this global pandemic, by contributing to the vital health & nutrition needs of a consumer population?
Affordability is at stake whether it is the monetary affordability of preventive care or of catching an infection and risking life.

The importance of traditional medicines is gaining its due recognition. The shifting pattern from sick care to preventive care and complete wellness is pertinent to imbibe. What has come into being now is an extension of informed lifestyle choices influencing the dynamics of a changing healthcare model. During the pandemic also, we kept hearing about the importance of healthy immunity and it was the only saviour from catching the infection. To keep the immunity high, we resorted to healthy eating habits and supplemented it with popping the multivitamins and other such dietary supplements.

Health is no more about medicines; it is the way of creating a defence mechanism that helps in extending the disease-free life span by preventing and limiting disease complications. The trend suggests that by the time patients resort to and receive conventional medicine and treatment for the ailment, in a majority of the cases, the severity is already multiplied. Covid-19 was the best example emphasising it. Limited cure possibilities then add to the cost of treatment, the stress, and in turn the mortality rate.

All these together have led to an evident transformation and the resurgence of nature-based science including the nutraceutical industry. With pandemic or no pandemic, the shift towards preventive healthcare is here to stay and it will offer tremendous opportunities for the nutraceutical industry.

How do you believe the supply chain backbone of the nutraceuticals industry, can leverage from vast agricultural resources and ancient Ayurveda remedies that are hugely untapped in our country today?
Business potential in the nutraceutical segment exists across the value chain for India. The economy that was once dominated by agriculture along with a strong foundation in the form of Ayurveda, provides us a robust base to explore “Farms to Formulations” end-to-end. Very few countries in the world are endowed with such unique combinations. Strong agriculture base, availability of labour, the talent that can support extensive research and passionate entrepreneurs, blend of these factors can very well aid the double-digit growth for India.

However, historically, industry players have shown a lack of willingness to involve themselves in agriculture and supply chains. There has been a reluctance to invest in marketing new concepts mainly due to the complexities involved in approval processes, discouraging taxations, and no due recognition to the nutraceutical industry itself. While the industry seeks more specific regulations and policies, this Union Budget 2021 has given positive announcements that can act as a good catalyst for industry growth. It is now for the industry players to take the lead.

We must commit to chemical-free farming to preserve the natural properties of the produce. Bring modern tools and technology to sustainable farming models, water irrigation, and also to bring an end-to-end traceability possible to gain better acceptance of the products manufactured in India.

There is a need to set up technologically advanced manufacturing plants and create and nurture the agri-farm linked models. There is also need to invest in extensive research that can help validate the ancient remedies from Ayurveda, establish testing laboratories, and conformity assessment in line with international standards.

Process tools and systems need to be developed across the value chain; bring in regulations that encourage exports, and have more patents and copyrights in the name of India. There is a need to learn the best practices from other countries like The Netherlands in terms of flowers, Thailand in terms of fruits, Malaysia in terms of Palm oil, etc.

Nutraceuticals is a sunrise sector in India that currently falls under the ambit of the Food Safety and Standards Authority of India (FSSAI), an authority under the Union Health Ministry. Therefore, what are the criticalities of a robust governance and support from relevant regulatory bodies, to ensure the key growth drivers and innovation led solutions are implemented to envisage an effective ecosystem? Regulatory perspectives on how much are FSSAI rules justified on products that look like pharma?
FSSAI is the authority under the Union Health Ministry. So, indirectly the nutraceutical industry comes under the purview of the Union Health Ministry. This is an authority that is still under formation and evolution. Additionally, since India's food market is large and the food companies are quite big, FSSAI's priorities and resources are largely focussed on the food sector. The nutraceuticals industry thus receives minimal attention and limited resources.

So, what is the alternative? The Government needs to decide to give the nutraceuticals sector the right focus under at least a Joint Secretary with a full charge. The concern here is the fact that the focus of the Union Health Ministry is limited to India largely while the nutraceuticals market has huge export potential; as we are just representing ~2% of the global trade vs. China representing ~14% and Asia contributing ~31%.
The immediate need is to clearly define the sector and its products and identify its potential. Ministry of Health has not shown acute stewardship in this direction. For instance, HSN codes for the industry need to be established, a centrally powerful authority is needed to help interface on inter –ministerial issues and resolutions and creating an export body for the industry are some critical issues that must be addressed swiftly.

In my opinion, the best suited is the Ministry of Commerce and Industry. It can play all the roles we expect and house the nutraceuticals under one of their running Export Promotion Councils (EPCs). For instance, Shefexil has the bandwidth to take this up. Shefexil has many products that go into the nutraceuticals industry and there are synergies that can help both the council as well as the industry.