Bio-gen Extracts, a bulk actives and nutraceutical raw materials manufacturer has raised Rs.12 crore through Makven Capital Pvt Ltd., Bangalore to fund its new facility at Dobbespet Industrial Area in the outskirts of Bangalore. The Greenfield project coming up on the Karnataka Industrial Area Development Board (KIADB) land is an EU-GMP compliant plant, which would be operational next year and is Bio-gen’s third unit in the state.

The company has appointed M J Associates, a project engineering consultant to oversee the design and construction of the facility.

The pharmaceutical and nutraceutical industry is capital-intensive. Going by the growing consumer awareness and stringent global regulatory norms, companies will have to adapt quickly, implement changes and be prepared to make the necessary investments. This is where Bio-gen has been investing on infrastructure to strengthen its research, quality assurance systems, production capability and packaging, said Saif Mekhri, director, Bio-gen Extracts.

The company which kicked off operations in 2000, already has two WHO-GMP units in Bangalore that specializes in the process development and manufacture of APIs, therapeutic enzymes, and nutraceutical raw materials. Technology developed over the last decade is designed to cater to specific market needs. Its competency in organic synthesis and process development has helped to build a solid customer base over the last five years. The products which includes dietary supplements and nutraceuticals among others are sought after in the Indian market and are also in demand from Europe and West Asia, North and Latin America regions. A few weeks ago, Bio-gen, launched Ferrous ascorbate for iron deficiency anaemia and Hemocoagulase enzyme in a novel formulation.

“We have successfully filed EDMF in 2005-06 for Ritodrine hydrochloride and is now recognized as being one of the three vendors for Hemocoagulase enzyme in the global arena. We entered into supply agreements with companies in the UK, Spain, Italy and Turkey for Ritodrine hydrochloride,” he added.

In 2008, the company bagged the Udyog Shiromani Award for excellence in Quality and Management instituted by the National Institute of Economic Development.

With the traditional pharmaceutical companies entering into the nutraceutical market, there is immense scope for growth. The global market size for nutraceutical raw materials, dietary supplements and natural extracts is estimated to be around Rs.4,000 crore. Among the leading players in India are Ranbaxy, Cipla, Novartis, Cadila, Nestle Nutrition, Herbalife, Amway and British Biologicals among others.