The Kerala-based Arjuna Natural Extracts Ltd is in the process of developing a new technology for obtaining high purity (75 per cent) Omega-3 fatty acids, with an investment of Rs 11 crore. The new technology is likely to be developed by the end of 2005 with a Japanese company extending its technical expertise, Dr Benny Antony, director-technical, Arjuna, told Pharmabiz.
Arjuna claims to be the first company in India to commercially manufacture marine omega-3 concentrates for pharmaceutical and health food industries. It manufactures Omea-3 fatty acids of both vegetable and marine origin in bulk in oil, powder and capsule forms.
Omega-3 is an essential fatty acid that is necessary for survival but cannot be synthesized by the body, hence it must be supplemented dietarily. It helps in the development of cell membranes and gives them stability and fluidity. WHO has recommended supplementation of Omega-3 in infant formulae since 1987.
It manufactures omega-3 concentrates from Fish lipid oil in India under the project HGT of TIFAC, Department of Science and Technology, Ministry of Science and Technology, Government of India. TIFAC has provided a soft loan to the company to take up this project which is executed under the Vision 2020 programme, he informed.
Frost & Sullivan in its recent study has stated that omega-3 will have an annual growth of 15-20 per cent in the coming years. Omega-3 which has been used in cardiology in the past is now gaining prominence in the areas of child nutrition and is recommended for lactating women.
Dr Antony added, Arjuna will keep its thrust on export markets such as the US, Germany, Italy, Japan and few other European countries for Omega-3 related products. India is also expected to become a significant market in the coming years.
The company also plans to launch phytosterols, plant-lipid like compounds that occur in plant cells and membranes which can help in reducing blood cholesterol, he added.
Arjuna has two subsidiary companies- Herbal Supplement Private Ltd and Livlong Nutraceuticals Ltd. The former deals with manufacturing of herbal and spice extracts whereas the latter provides finished natural herbal products (nutraceuticals) in capsule form.
The company has four extraction units in Kerala and Tamil Nadu. One unit in Kerala is a R&D unit approved by DST for in-house research, another unit in Kerala is for herbal extraction. It has one herbal extract unit at Coimbatore (TN) which is exclusively for Omega-3 extraction and another unit is at Satya Mangala in Tamil Nadu for herbal extraction. The company takes up contract manufacturing of herbal extracts and also capsule manufacturing in its WHO GMP certified facility, besides custom packaging.
He informed, the company will be focusing on herbal and fat based products in the future. It is expecting to achieve a turnover of Rs 23 crore in the current financial year and is targeting to touch the Rs 80 crore mark in the coming three years. In the year 2003-04, herbal products accounted to about 80 per cent of the total sales, but in the current financial year the company's Omega-3 range of products are likely to contribute 50 per cent of the sales. The company spends 15 per cent of its turnover on research and development.
As of now, 80 per cent of the company's turnover is contributed by exports. The company sources herbal extracts as dietary supplements and bulk ingredients to over 30 countries.