OmniActive Scouting For More Acquisitions; May Raise Second Round Of Private Capital
An intensive research focused OmniActive currently supplies ingredients to several global clients, including large healthcare, nutrition and consumer staples companies
Barely four months after acquiring the majority stake in the natural extracts and dietary supplements maker Indfrag, nutritional ingredients firm OmniActive Health Technologies is planning a couple of more strategic acquisitions in the domestic as well as foreign markets. The Mumbai-based company, backed by private equity investor Everstone, has already appointed merchant bankers for valuing suitable targets and valuation of these purchases could be in the range of $10 million to 20 million.
"We are exploring some more acquisitions in the space of marketing and technology in our core area ie. health, food and nutrition in India and abroad," said founder and managing director, Sanjaya Mariwala in a recent interview with BW Businessworld.
The markets that it wanted to expand into through new acquisitions include Germany, France and Italy in EU region and South Korea and Taiwan in Asia. It also wants to further strengthen its presence in the US.
An intensively research-focused OmniActive currently supplies ingredients to several global clients, including large healthcare, nutrition and consumer staples companies.
“We want to expand both the market reach as well as the technology base for innovative products by acquiring strategically fit entities in the existing and new geographies," Mariwala added.
The company had in January acquired 85 per cent stake in the Bengaluru- based Indfrag. Though the company did not disclose the price, the acquisition value was believed to be around $80 million. Along with the majority stake purchase, the OmniActive had also signed a definitive agreement with Indfrag to acquire the balance stake in a few months.
The Indfrag acquisition provides the company strong distribution capability in markets like South Korea and the US. It would also OmniActive gaining access to extracts which are used in the production of nutraceutical products along with two large production facilities in India. Indfrag also makes ingredients for sports nutrition, pharmaceuticals, food and cosmetic industries. Besides domestic clients, it also exports its products to the US and Europe. It has two plants in India and a marketing and warehousing facility in New Jersey.
OmniActive, which had earlier raised funds from private equity firm Everstone Capital, would utilise these funds mainly for acquisitions. In order to fund the new deals, the company could raise more private capital or even debt funds. It will consider going public when its revenue crosses Rs 1,000-1,500 crore and the public offer could provide the profitable exit to the existing investors. The company’s revenue is currently around Rs 300 crore.
OmniActive is the second entrepreneurial venture of Mariwala, who had earlier set up Kancor Ingredients, a research and manufacturing venture in the area of natural food colours, ingredients, essential oils, spice oils and mints and menthols among others. His first venture Kancore was sold to French flavours and fragrance company V. Mane Fils in 2014.
OmniActive develops ingredients used in products such as dietary supplements, functional foods and beverages and personal care products. One of its products--Capsimax Capsicum Extract, an ingredient that goes several therapeutic formulations and also beverages used in weight management and sports nutrition. While its marigold extract is an important ingredient for some top selling eye care products, it also makes curcumin extract, a type of turmeric and ginger extract among others. The company has three research and development facilities, at Pune and Thane in Maharashtra and Prince Edward Island, Canada. It also has a manufacturing facility in Pune.