Chennai based Parry's Nutraceuticals, part of the Murugappa Group and one of the country's largest manufacturer and supplier of spirulina, has, for the first time in the world, developed a technology that will enable growing haematoccus algae in open culture instead of the now followed closed photo bio-reactors.
Haematoccus algae is the source of a very potent anti-oxidant, Astaxanthin, which is considered more powerful than natural Beta-carotene. It has hitherto been grown in closed photo bioreactors. The unique technology developed by Parry's Nutraceuticals in its course of working over a year and a half on the above said algae not only enables for growing the algae in the open but also brings down the cost of producing Astaxanthin.
The company is now looking at investments from interested parties to take advantage of this technology. "We have already spent much on studying and developing the algae, so also in developing this technology. Now we are looking at outside investments. We are also looking at venture capital funding. The investment we are looking at is in the range of US $ 1 million. I must tell you here that some foreign parties have evinced interest in investing," said Sebastian Thomas, Head, R&D of the company.
Astaxanthin is a red pigment that is obtained after converting the algae from the green stage into red stage. Having a pH equivalent to water, growing the algae in the open was an impossible task till now for it allowed unwanted weeds to grow alongwith the algae. The unique technology now developed by the company will enable it to develop the same in open culture.
Worldwide, apart from Parry's Nutraceutical, there is only one manufacturer of the pigment in Xynotech, USA.
Consequent to developing the technology, the company is now planning to grow the algae in half an acre pond maintained by it in Onaiyur in Pudukkotai district of the state. This pond currently is used in developing spirulina. "By June this year we should be ready for trial production," Thomas reiterated. "The outside investment we are looking at is for further developing the technology. The investment partner(s) will get to have the benefit of the superior technology and the product at a less cost than the prevalent price," Thomas added, hinting at the point that the investment partner(s) could also look at buy- back of the product vis-a -vis the investment made.
The company is gearing up to launch Astaxanthin as an over-the-counter (OTC) product, as a dietary supplement, in the domestic market in the next financial year. It is also looking at marketing in bulk in the domestic and export markets.
Meanwhile, the company has been able to explore new markets for its spirulina product. Currently being exported to US, Canada, Russia and some countries in Europe in the product form, the company has recently forayed into Hongkong, and is now looking at Japan and Korea, both being considered as potential markets.
The foray into Hongkong has been made possible with the appointment of a distributor, AnR's Nutraceuticals, which will take up the task of marketing the product in the province. "Japan and Korea are also promising markets, and we are looking at them seriously. We should be able to make a foray into the two markets very shortly," Thomas maintained.
The company currently has a manufacturing capacity of 120 tonnes of spirulina and 50 tonnes of Dunaeilla algaes. A major chunk of the capacity is being exported while the remaining is supplied in bulk to over 50 pharmaceutical companies in the country which make use of the same in their respective nutraceutical products, marketed through both ethical and OTC routes.
Exports contributed 60 per cent of the company's turnover. The company expects the contribution from the domestic market to grow in the coming years. Thomas maintained that the domestic market has been growing at an annual rate of 15 per cent and is expected to touch 150 - 200 tonnes in another two years time.
Meanwhile, there is a move within the group to shift the algae business of two group companies to Parry's Nutraceuticals. While Parry's Nutraceuticals is currently a marketing company within the group with focus on R&D too, spirulina has been grown as a business of New Ambadi Estates while Dunaliella has been grown under the aegis of Parry Agro Industries Ltd. Thomas maintained that there has been a move to concentrate the growing and developing, besides marketing, activities of the algae to Parry's Nutraceuticals. The move, according to Thomas, is expected shortly.
New Ambadi Estates and Parry Agro Industries Ltd were recently accorded the ISO 9001: 2000 certification by the assessing authority, BVQI, The Netherlands. While for the former it was accorded the certification for Production and Marketing of Bulk Spirulina Algae, the latter received it for Production and Marketing of Natural Mixed Caretonoids for Dunaliella Algae. The respective certification is valid for three years.