Deccan Healthcare, a Hyderabad-based nutraceutical products company, has raised Rs 15 crore from Nexus Venture Partners. The company plans to utilise a substantial part of the capital to set up a manufacturing plant in tax-free zones of Himachal Pradesh or Uttaranchal.
“We plan to invest around Rs 13 crore in setting up our manufacturing plant and machinery. The remaining investment will go towards expanding market reach,” Minto Gupta, founder and CEO, Deccan Healthcare told VCCircle.
The company, which currently has 18 products in its portfolio, is looking at a size of 100 products in the next two years and is also targeting the export market. Deccan Healthcare products target cardiac, bone & joint, neuro care and women care categories.
Sandeep Singhal of Nexus Venture Partners said, “the Indian nutraceuticals market is over a billion dollars growing at 30-40% per annum.” Mr Singhal, who will join the Deccan Healthcare board, says, the company leads in the Omega-3 market and is expanding into a variety of nutritional supplements.”
The company posted revenue of Rs 26 crore in 2008-09 and its margins were in the region of 15%. It is targeting a turnover of Rs 50 crore in the next fiscal, Gupta said.