Suresh Garg, CMD and Founder of Zeon Life Sciences
Globally, the Contract Research and Manufacturing Services (CRAMS) market has been proliferating. According to the reports, the global CRAMS market grew from $120.23 billion in 2022 to $129.97 billion in 2023 at a CAGR of 8.1 per cent. A lot of Pharma players make a huge part of these CRAMS, and various companies in the nutrition and ayurvedic product space are also contributing to this market. Zeon Lifesciences, India’s one of the leading CRAMS organisations in the Nutrition and Ayurveda space is one such player. Shedding light on the company’s future plans and the current status of the company’s CRAMS, Suresh Garg, CMD and Founder of Zeon Life Sciences, shares his insights in an exclusive interview with nuFFooDS Spectrum. Edited excerpts:
What is the status of Contract Research and Manufacturing (CRAMS) in the Nutrition wellness and Ayurvedic product space in India?
The contract research and manufacturing (CRAMS) market in the nutrition wellness and Ayurvedic product space in India is growing rapidly. This is due to the increasing demand for these products from both domestic and international markets. The growth of this market is being driven by several factors, including:
- With a growing emphasis on leading healthier lifestyles, consumers are increasingly seeking nutrition and wellness products to enhance their well-being. This trend has driven the demand for supplements, organic foods, and functional beverages that offer various health benefits.
- Ayurvedic products, based on traditional Indian medicine principles, have gained significant traction worldwide due to their perceived natural and holistic approach to health. Consumers are gravitating towards Ayurvedic remedies, including herbal supplements, skincare, and wellness treatments, to address various health concerns.
- As economies grow and standards of living improve, consumers have more disposable income at their disposal. This increased spending power allows them to invest in premium nutrition and wellness products, making healthier choices and fueling the expansion of the wellness industry
- The government’s backing and incentives to the Contract Research and Manufacturing Services (CRAMS) industry have encouraged pharmaceutical and healthcare companies to outsource their research and manufacturing processes. This support fosters innovation, cost-effectiveness, and efficiency in the pharmaceutical sector, boosting overall growth in the industry.
The future of the CRAMS market in India looks bright. The growing demand for nutrition wellness and Ayurvedic products is expected to drive the growth of this market in the coming years.
What are the recent developments in the company’s CRAMS in the Nutrition wellness and Ayurvedic product space?
Here are some of the most notable recent developments in the Nutrition wellness and Ayurvedic product space of Zeon Lifesciences-
- The company has expanded its presence to 13+ countries in the FY 2023-24. This is a key strategic move for the company, as the global market for nutraceuticals and Ayurvedic products is expected to grow significantly in the coming years.
- Considering the diverse requirements in the market, we have launched several new products, including sublingual sprays, Liquid filled capsules, and pet nutrition.
- In response to the growing need for probiotics, we have recently ventured into manufacturing using intelicaps technology to overcome the probiotic viability challenge, ensuring that they address the current market demands effectively
What are your views on ‘Made in India’ developments in Ayurveda and nutraceuticals?
India has a long and rich history of traditional medicine, and there is a growing body of scientific evidence to support the efficacy of many Ayurvedic and nutraceutical products. Made in India developments in Ayurveda and nutraceuticals are very promising. By combining traditional knowledge with modern science, Indian companies are developing innovative products that can help people to live healthier lives.
There are several Indian companies that are developing and marketing herbal supplements based on traditional Ayurvedic principles. These supplements are used to treat a variety of health conditions, including anxiety, depression, and heart disease. Indian companies are also developing functional foods that are enriched with natural ingredients that have health benefits. These foods are designed to improve gut health, boost immunity, and reduce the risk of chronic diseases.
India’s remarkable progress in Ayurveda and nutraceuticals positions it as an important global hub for traditional and natural healthcare solutions. As the scientific community continues to explore and validate the efficacy of these products, “Made in India” developments are expected to contribute significantly to the well-being of people worldwide
What are the key supply chain challenges faced by the company in terms of nutraceutical and ayurvedic ingredients?
Considering the nature of the market, Zeon Lifesciences Ltd faces a number of key supply chain challenges in terms of nutraceutical and Ayurvedic ingredients. These challenges include volatile raw material prices, limited availability of quality ingredients, complex regulatory requirements, and long lead times.
However, we are addressing these challenges by working with suppliers, developing new sources of ingredients, investing in research and development, and improving its supply chain management. The supply chain challenges faced are significant, but the company is taking steps to mitigate these challenges and ensure that it can continue to grow its business.
What was the revenue of the company in FY 2022 and what do you expect in FY 2023? Which product category in Nutraceuticals and Ayurveda space contributes the most to the annual revenue?
During the last five years, Zeon has exhibited an increasing trend with a CAGR of 27.88 per cent and improved profitability at all levels indicated by Gross Profit, Operating Profit, and Net Profit improved to 24.68 per cent, 17.80 per cent, and 13.22 per cent respectively.
The company’s impressive growth was evident as its revenue went up by a large amount, setting us up for even more success in FY 2023. Among various products, Zeon is a pioneer in protein powders and it contributes a significant part to the company’s revenue.
What is the status of the company’s global business? How much does international business contribute to the total annual revenue of the company?
Zeon Lifesciences Ltd. has successfully expanded its reach across the globe, operating in more than 13 countries, including Cambodia, Philippines, Malaysia, Myanmar, Vietnam, USA, Sudan, UAE, Kenya, Jamaica, Zimbabwe, and Yemen and is in the process of getting through in seven more countries.
With a strong commitment to becoming a prominent player in the global natural health market, we are confident to have strong footage in international business and a significant contribution to the overall annual revenue in FY 2024. The company’s focus on emerging markets is paying off, as these markets are seeing a growing demand for natural health products.
What are the future plans of the company in terms of product development and expansion?
The company has ambitious plans for product development and expansion in the coming years. To ensure the highest quality of products, we have built associations with more than 500 suppliers for raw materials and packaging materials. This allows us to maintain a diverse and reliable supply chain.
At Zeon, we have an ambitious expansion plan laid ahead. It includes diversifying its product portfolio and venturing into new markets, paving the way for exponential revenue growth in the upcoming fiscal year. The company remains committed to its vision of continued progress and prosperity, driven by innovation and strategic decision-making.
As a company aiming for good innovation, we are also investing in research and development to develop new products that meet the needs of consumers in emerging markets as well as address new health challenges.
Mansi Jamsudkar
mansi.jamsudkar@mmactiv.com