Parry enters OTC mkt with two protein drinks

Parry Nutraceuticals, a division of Murugappa group firm EID Parry (India) Ltd, has entered into the Over the Counter (OTC) market by launching two protein drink products. It has identified OTC as a key business focus area and plans to launch around 25 products in the segment in next three years.

The company has launched two premium protein drinks, Pro 9 and Pro 9 D, targeting high class and higher end of middle class population in metros and tier-1 cities. Pro 9 protein powder is a combination of 21 essential vitamins and minerals with whey protein, while Pro 9 D is a sugar-free protein powder with fenugreek soluble fibers for regulation of blood sugar level in diabetics. The products would be launched in south India immediately and would enter Mumbai, Ahmadabad and National Capital Region (NCR) by the end of the year. It would reach almost every city and metro by the middle of next year. The pan-India presence would be accomplished in next two years. It expects to have a reach to 15,000 outlets including retail chemists and organized chain retail outlets in the first year of marketing.

The company is aiming at 8-10 per cent of the Rs 350 crore protein drinks market with the two products launched and expects Rs 45-50 crore in the first year of marketing. At present, plans are to market the OTC products only in the domestic market. The company is outsourcing manufacturing of the OTC products. The OTC range would have three sub-categories, Parry's Active Care targeting general health and wellness, Parry's Health Care focusing on specific health conditions like diabetes, lever disease and immunity and Parry's Body Care, catering the cosmeceutical segment. The company has been into manufacturing and supply of natural micro algae ingredients including organic Spirulina, beta carotinin, lycopene and astaxanthin to finished products manufacturers and brand owners, for past 35 years.

Expansion plans

Parry Nutraceuticals would invest Rs 50-100 crore in two Greenfield projects, to expand its facilities for cultivation and extraction of micro and marine algae. It would set up a facility for marine algae cultivation and extraction for beta carotin, a Vitamin A source, in an area of around 165 acres in the coastal area of Ramanathapuram district in Tamil Nadu. It would also double its capacity for Lycopene cultivation, extraction and processing. The investment would be in the range of Rs 50-100 crore for the projects, depending on the final plan. Natural lycopene is an antioxidant compound giving the color to vegetables like tomatoes, which has characteristics to protect against prostate cancer. The company has a manufacturing capacity of 12 tonne of lycopene per annum at present and plans to increase it to 24 tonne per annum through expansion.