Accretion Nutraveda
- Accretion Nutraveda is coming out with an initial public offering (IPO) of 19,20,000 shares in a price band of Rs 122-129 per equity share.
- The issue will open on January 28, 2026 and will close on January 30, 2026.
- The shares will be listed on SME Platform of BSE.
- The face value of the share is Rs 10 and is priced 12.20 times of its face value on the lower side and 12.90 times on the higher side.
- Book running lead manager to the issue is Sobhagya Capital Options.
- Compliance Officer for the issue is Payal Hareshbhai Kotadiya.
Profile of the company
The company is in the business of the Manufacturing of Ayurvedic and Nutraceutical products across several dosage forms, including Tablets, Capsules, Oral liquids, Oral Powders, External Preparation and Oils. It is a healthcare focused company specialising in contract manufacturing, serving domestic as well as export markets in various countries like Sri Lanka, Singapore and the USA. It offers a diverse range of dosage forms, leveraging both Classical Ayurvedic principles and modern nutraceutical science. Since its inception in 2021, the company has established itself as a reliable Contract Development and Manufacturing Organization (CDMO), offering specialized services to a wide range of clients across various industries.
Its product portfolio includes Tablets, such as film-coated and chewable varieties, for applications in liver care, gynecological care, bone and joint health, and respiratory support. It also manufactures Capsules, including hard gelatin and HPMC capsules, targeting areas like liver detoxification, women’s health, and cognitive support. Its oral liquids include syrups, suspensions, and tonics, which are particularly suited for paediatric and geriatric segments. Additionally, it produces Traditional Ayurvedic Powders known as churans for digestive health, medicated ayurvedic oils for musculoskeletal and dermatological applications using traditional processes, and a range of external preparations like balms, ointments, creams, and gels for pain relief, skin care, and hair care.
Its leased manufacturing facility spans a built-up area of around 10,763 square feet over two floors. The facility is designed for ayurvedic and nutraceutical production and is equipped with significant infrastructure that includes 13 Air Handling Units with HEPA filters, dedicated processing areas, and separate dispensing booths to prevent cross-contamination. The facility holds multiple certifications that attest to its adherence to quality and safety standards, including GMP certification for the manufacture of Ayurveda, Siddha & Unani Drugs from the Gujarat FDCA, WHO-GMP certification, FSSC 22000 for Food Safety Systems, ISO 9001:2015 for Quality Management Systems, ISO 45001:2018 for Occupational Health and Safety, as well as Halal certification and an FSSAI license.
Proceed is being used for:
- Purchase of machineries for automation in existing manufacturing unit
- Purchase of machineries for new manufacturing setup
- Funding working capital requirements of the company
- General corporate purposes
Industry Overview
The Indian pharmaceutical industry is known for its generic medicines and low-cost vaccines globally. Transformed over the years as a vibrant sector, presently Indian pharma ranks third in pharmaceutical production by volume. The pharmaceutical industry in India is the third largest in the world in terms of volume and 14th largest in terms of value. The pharma sector currently contributes to around 1.72% of the country’s GDP. The Indian pharmaceuticals industry is expected to grow 9-11% in the financial year 2024, as per ICRA. In FY23, the Indian pharma market saw a year-on-year growth of nearly 5%, reaching $49.78 billion. During FY18 to FY23, the Indian pharmaceutical industry logged a compound annual growth rate (CAGR) of 6-8%, primarily driven by an 8% increase in exports and a 6% rise in the domestic market. Major segments of the pharmaceutical industry are Generic Drugs, OTC Medicines, API/Bulk Drugs, Vaccines, Contract Research & Manufacturing, Biosimilars, and Biologics. The market size of India’s pharmaceuticals industry is expected to reach $65 billion by 2024, around $130 billion by 2030, and around $450 billion by 2047.
India is the 3rd largest market for APIs globally, with an 8% share in the Global API Industry. More than 500 APIs are manufactured in India, contributing 57% of APIs to the prequalified list of the WHO. Pharmaceuticals is one of the top ten attractive sectors for foreign investment in India. The pharmaceutical exports from India reach more than 200 nations worldwide, including highly regulated markets of the USA, Western Europe, Japan, and Australia. The market size of the medical devices sector in India was estimated at $11 billion in 2023, accounting for a 1.5% share in the global market. The government has set an ambitious target to elevate the medical devices industry in India to $50 billion by 2030. The pharmaceutical sector targets Rs 11,08,380 crore ($130 billion) by 2030, while biotechnology aims for Rs 25,57,800 crore ($300 billion) by the same year.
India’s drugs and pharmaceuticals exports stood at Rs 2,59,658 crore ($30.38 billion) in FY25 and Rs 2,43,119 crore ($27.82 billion) in FY24. About 20% of the global exports in generic drugs are met by India. India's pharmaceutical industry is projected to experience substantial growth, with exports expected to reach Rs 30,76,500 crore ($350 billion) by 2047, marking a 10-15x increase from current levels. The government has set an ambitious target to elevate the medical devices industry in India from its current $11 billion valuation to $50 billion by 2030. Besides this, the Government of India is launching various schemes such as the Pradhan Mantri Jan Aarogya Yojana (PM-JAY), Ayushman Bharat Yojana, Pradhan Mantri Suraksha Bima Yojana, and Aam Aadmi Bima Yojana (AABY) to provide health insurance to the economically weaker sections of the country. These schemes also offer comprehensive healthcare facilities to central government pensioners and officials under the Central Government Health Scheme (CGHS). At present, there is a rise in demand for healthcare insurance among the masses due to increasing medical costs. This, coupled with a growing geriatric population, represents a key factor offering a favorable market outlook in India.
Pros and strengths
Diverse product portfolio: The company is engaged in the manufacturing, and marketing of products in the segments of Nutraceuticals and Ayurveda. It currently has a product basket of more than 72 formulations across multiple dosage forms. These include Tablets, Capsules, Oral Liquids, Traditional powders (churans), oils, and external applications such as ointments, creams, balms, and gels. The company operates under two business verticals: i) domestic sales and merchant export on loan-license basis; and ii) direct export sales.
Relationships with clients and suppliers: The company has established relationships with clients and suppliers which are integral to the conduct of its business. The Promoters, who are also involved in sales and marketing functions, oversee the maintenance of these relationships through business transactions and operational engagements. These relationships support procurement of raw materials, distribution of finished goods, and continuity of business operations. The company considers such relationships to be relevant for the stability of operations and for supporting future business activities.
Commitment to quality standards: Quality is at the core of its operations. It follows rigorous quality control processes across all stages of production to ensure product consistency, safety, and efficacy. The company has established Quality Assurance (QA) and Quality Control (QC) systems to ensure compliance with FSSAI, AYUSH, GMP and other applicable guidelines. QA covers regulatory compliance, SOPs, vendor qualification, documentation (BMR, BPR, and master formula), employee training, internal audits, and validation of equipment and processes. QC involves testing of raw materials (identity, purity, potency, and contaminants), in-process checks such as blend uniformity, and verification of packaging materials and labelling. Its manufacturing facilities are WHO-GMP approved and operates under ISO 9001:2015 and ISO 45001:2018 certifications. Its manufacturing facilities are aligned with internationally accepted standards.
Risks and concerns
Uncertainty and margin pressure from new product category expansion: In recent years, it has expanded the product categories available across its platforms and websites. New product categories require it to understand and make informed judgments about consumer demand, trends, and preferences. It may misjudge these factors for new products offered by suppliers, sellers, and brand partners on its platforms, and face challenges in inspecting and controlling quality, regulatory requirements, handling, storage, and delivery of such new products. It may also need to price aggressively in new categories to gain traction with consumers and improve brand awareness, which may not be possible in instances where its customers impose restrictions on its ability to offer such products at a discount, thereby adversely affecting its gross margins. It may also make substantial investments in launching such new products or business verticals on its platform. Additionally, it expects to obtain new products as a result of acquisition activity, which may require further investment. Expanding its offerings or business verticals may strain its management and operational resources. Achieving profitability with new product categories and business verticals may be difficult, and as a result, its profit margins may be lower than anticipated, which would adversely affect its results of operations.
Dependence on the nutraceutical industry and competitive developments: The company is primarily engaged in the manufacturing of nutraceutical products, and as such, its revenues are highly dependent on its customers in the nutraceutical industry. The loss of any of its customers within this industry could adversely affect its sales and, consequently, its business and results of operations. Furthermore, if there is a shift in the practice of developing products in-house within the nutraceutical industry, it may negatively impact the demand for its products. Similarly, if its competitors or customers achieve a breakthrough in the development of a novel product or raw material, its products may become obsolete or be substituted by such alternatives, which would adversely impact its revenues and profitability. Additionally, if its competitors are able to improve the efficiency of their manufacturing processes, distribution, or raw material sourcing, and offer similar or higher-quality products at a lower price, The company may be unable to adequately respond to such developments, which could further affect its revenues and profitability.
Risks related to raw material procurement and supplier dependence: It purchases various kinds of raw materials from third-party suppliers domestically. It does not have long-term contracts with its third-party suppliers. Instead, prices are negotiated for each purchase order, and it generally maintain relationships with multiple suppliers for each raw material. The terms and conditions, including the return policy, are outlined in the purchase orders. It prioritizes sourcing materials from reputable suppliers and typically seeks quotations from several sources. As it does not have long-term contracts with its suppliers, and prices are based on quotes it receives, its suppliers are not contractually obligated to supply materials to us. They may choose to sell their products to its competitors instead. Any non-availability, shortage, or use of substandard raw materials could materially adversely affect its business. Additionally, power shortages or failures in the manufacturing process may impact its operations and financial results. Moreover, any discontinuation of production or failure by its suppliers to adhere to delivery schedules or quality and quantity requirements could disrupt its manufacturing operations.
Outlook
Accretion Nutraveda is a healthcare-focused Contract Development and Manufacturing Organization (CDMO). The company specializes in ayurvedic and nutraceutical products including tablets, capsules, oral liquids, oral powders, external preparations and oils. Its portfolio spans diverse healthcare segments such as bone and joint care, respiratory care, gynec care, digestive care, cardiac care, liver care, paediatric care, skin and hair care, urinary and UTI care, baby care products and memory and neuron care. The company holds ISO, WHO-GMP, and Halal certifications, ensuring global quality and safety standards. On the concern side, its working capital requirements, towards which it intends to deploy Rs 550 lakh from the Net Proceeds, are based on certain assumptions. Any change in working capital requirements on account of such assumptions may materially adversely affect its results of operations and profitability. Moreover, it is dependents on several third-party service providers to sell or distribute its products to consumer, and on third party technology providers for certain aspects of its operations. Any disruptions or inefficiencies in these operations may adversely affect its business, financial condition, cash flows and results of operations.
The company is coming out with a maiden IPO of 19,20,000 equity shares of face value of Rs 10 each. The issue has been offered in a price band of Rs 122-129 per equity share. The aggregate size of the offer is around Rs 23.42 crore to Rs 24.77 crore based on lower and upper price band respectively. On performance front, the revenue from operation for FY25 stood at Rs 1600.18 lakh whereas in FY24 it was Rs 500.52 lakh representing an increase of 219.70%. Moreover, profit after tax for the period ended March 31, 2025, stood at Rs 261.28 lakh and for the year ended March 31, 2024 it was Rs 82.19 lakh representing an increase of 217.90%.
The company intends to further strengthen its sales and marketing network by expanding its presence in new domestic geographies. At present, its products are sold in both domestic and select international markets such as Sri Lanka, Singapore, and the USA. Going forward, it aims to enhance its global footprint by transitioning towards direct exports instead of relying solely on intermediaries. This strategy is expected to improve profitability, enhance brand visibility, and build stronger customer relationships. Further, it intends to strengthen its portfolio by launching new and innovative formulations; and aligning new product development with global nutraceutical trends and regulatory frameworks. This continuous product expansion ensures that it can cater to diverse customer requirements while capturing new market opportunities.
