Sanat Products plans more acquisitions after snapping up Hindustan Herbals Limited

Thanks to the increased popularity of turmeric and other botanical products in food and beverage, market analysts have seen an uptick of interest and familiarity for Ayurvedic ingredients outside of India, which has translated to increased activity for Indian ingredient suppliers.

After expanding its business to reach US shores by partnering with AIC, New Delhi-based Sanat Products Limited announced the acquisition of another herbal company, Hindustan Herbals Limited (HHL).

“This acquisition came at the right time since Sanat’s two manufacturing facilities were running on 90% capacity,” a spokesperson for the company told NutraIngredients-USA. Specializing in plant extracts and phytochemicals, the company has experienced a surge of growth as Ayurveda trends upward around the world, from supplements to food and beverage to pet nutrition.

According to the spokesperson, curcumin, spirulina, guggul, boswelia, and piperine are major contributions to the company’s revenue, driven by applications in weight management, antioxidant supplements, and joint management.

Continued growth in US business arm

“Sanat’s strategy is to maintain leadership in the natural product market,” said Amit Sharma, Business Head of Sanat Products Limited, India. “The acquisition of Hindustan Herbals Limited perfectly corresponds this strategy as it complements our existing business and offers our global customers access to a wide range of products and services.”

In the US, Sanat’s herbal extracts business has grown over 18% year-over-year in 2016, said the spokesperson.

“Together with our subsidiary, we now hold a strong foothold in the Ayurvedic, food supplement, beverage, cosmetic and pharmaceutical industries. This is a remarkable platform for further growth in the country and beyond. More acquisitions will follow,” Sharma added.

HHL is one of the largest producers of licorice extract and its derivatives, the spokesperson said, adding to Sanat’s vast herbal portfolio. “Sanat’s customers in over 40 countries will benefit from the acquisition by having access to HHL’s range of botanical API’s, research and development facilities, quality assurance as well as assistance with CTD compilation, including in-house stability testing,” said Pradip Burman, chairman of Sanat Products Limited.