OmniActive focused on Lutein supply chain in India
It has inaugurated its second production facility, 100 miles from Bangalore, that will be dedicated to premium lutein production for the international market.
This marks part of a wider vertical-integration scheme, set up by the ingredients company to ensure full control of its production chain in India.
Abhijit Bhattacharya, CFO at OmniActive, said “sourcing is a tough challenge for any industry on a global level.”
“Manufacturers and end-consumers alike are looking for high quality, safe products at a value,” Bhattacharya said.
The vertical integration plan caters to these quality needs, he said, for Lutein used in human nutrition.
“We have structured our supply chain process such that we have minimized the risk of sourcing issues,” under the vertical integration plan, he added.
When the company started up in 2005, “our focus was on the future, not only for our company, but for the way ingredients could be sourced, manufactured and distributed throughout the world,” he said.
Having control of the entire supply chain, ensures traceable, quality controlled, consistent and reliable supplies, he added.
Premium, quality Lutein assured at farmer level
The company has a working partnership with Indian farmers, he said, where it offers incentives such as immediate buy-backs.
It also ensures better seed quality for its farmers, which in turn improves yield, he said.
The new facility will be focused on marigold production, used for the premium Lutein ingredient, Bhattacharya said, and will involve rigorous screening for pesticide residues and agrochemicals.
“Our target consumers will be supplement as well as food and beverage manufacturers,” he said.
We will be expanding to other products over time, he said.