NUTRACEUTICALS: OUR PLAN

OVERVIEW

Nutraceuticals have been steadily coming to prominence in the western markets of North America and Europe over the last 30 years. As these markets reach maturity, Terravana believes the time has come to expand the infant nutraceuticals markets in Asia. Having begun in Japan during the 1980s, the modern nutraceuticals industry is the natural descendant of Eastern medicine, developed over centuries in various Asian countries.

With India accounting for only 1% of the global nutraceuticals market, we aim to extract the benefits from Indian-origin products using leading technology, ensuring the production of high quality nutraceuticals to this burgeoning market segment. Specifically, this will see the company scale up an existing business in southern India, leveraging its expertise and our business acumen to provide us with our most profitable and lucrative segment.

BUSINESS MODEL & TIMELINE

Our nutraceuticals processing plant will manufacture two products: Garcinia Cambogia, a weight loss supplement based on tamarind extract, and Curcumin, a cancer research drug based on turmeric extract. India is the largest producer and exporter of both curcumin and garcinia. These products are currently manufactured in Bidar (India) and the raw materials needed are procured from small farms in neighbouring districts.

We will create a completely self-sufficient production plant from an existing boutique facility. By implementing an equipment upgrade, we will be able to boost its proven track record, improving on both scalability and profitability. It will have a flexible supply chain as we establish an export channels for direct sales into the United States. Because of its narrow focus, we will be able to adapt to and capitalise on changing industry trends in future.

Our total investment in the nutraceuticals line is $5 million. In the first year of operations, we estimate production of 54 tons of Garcinia Cambogia and 50 tons of curcumin, equating to a cumulative revenue of $3.2 million.