Kerala flood repercussions: Herbal extracts industry not directly hit, says Arjuna exec

26 Sep 2018 --- Although floods that recently hit the Indian subcontinent have not directly affected the herbal extracts sector, which is particularly well-represented in the southern Indian state of Kerala, the impact on agri production is significant. This is according to Benny Antony, Joint Managing Director at Arjuna Natural Limited, which is a major supplier of herbal extracts with operations in the region.

“Fortunately the herbal extract industries in Kerala has not directly been hit by the recent flood but it has badly affected cash crops such as pepper, rubber, coffee, etc., the devastating floods washed off vegetables, medicinal plants and horticulture crops and acres of paddy cultivation in the Palakkad and Kuttanad regions,” says Antony. “There has been a loss of rich genetic resources of crop varieties and breeds and the flood-hit districts are some of the best agri production and promotion zones. We are mainly affected in getting the raw material of ginger and coffee,” he adds.

Devastating floods swept across the state of Kerala in early August, following the second highest recorded rainfall ever, the highest being in 1924. The floods had shocking human consequences, displacing more than one million people. Early estimates were that at least 445 others died, mostly due to falling debris, collapsed buildings and lack of food and water.

A joint team from the World Bank and Asian Development Bank that conducted a damage assessment of the floods has recently pegged damages at Rs. 25,046 crore (US$3.4 billion) in a preliminary assessment. In the livelihood sector that has been sub-divided into agriculture, livestock, fisheries, industries, handloom and coir and tourism sectors, the highest impact was on agriculture, for which the team estimated Rs. 2,093 crore (US$288 million) for recovery from damages.

“The heart of Kochi’s industrial belt on the banks of the river Periyar, that houses more than 300 small and big units is now a scene of destruction,” says Antony. He added, however, that the floods did not directly cause any damages to their factory as such, except for a production loss of four days.

Antony stresses that the supply impact for the company will be minimal. “The majority of the raw materials come from other states except for ginger, so it was not an issue. We have contacted all of our customers to ensure them the safety of our products and committed to continue supply our product line on time,” he adds.

Moving forward, Antony stresses that “all stormwater and drainage channels should be desilted immediately in flood-affected and low-lying areas. Coordination meetings with government authorities should be held to spread the message to the field staff and make it happen.”

NutritionInsight has reached out to other suppliers with facilities in the region.

Arjuna Natural positions itself as India’s leading manufacturer and exporter of standardized botanical extracts for pharmaceutical and nutraceutical industries for more than two decades. Established in 1989, the company has grown in epic proportion with customers around 40 countries, with key products including curcumin derived from the prevalent local crop of turmeric.

Antony is confident on the market outlook as a whole, with curcumin products still trending. “Globally, the spice and herb extracts market is expected to grow at a CAGR of 7.1 percent from 2018 to 2023. This market was estimated to be valued at US$6.91 billion in 2017. Consumers seek for clean, natural ingredients backed by research,” he says.

“We are concentrating on health supplement ingredients and taking new steps to have market leadership in the segment like rebranding the successfully patented curcumin formulation as ‘Curcugreen,’ formerly known as BCM-95. This change is to assure the highest quality product from farm to customers. We shall continue the research on curcumin – the emerging molecule in the health food segment. We also noticed a significant leap in demand for natural coloring and natural preservatives and our new food ingredient division is rapidly growing,” he adds.

In terms of specific platforms being targeted by Arjuna, Antony notes that more research is being conducted into curcumin for inflammatory diseases and stress management.

From a product development standpoint there is plenty in the pipeline too, he notes. “We are doing a lot of research on herbal extracts and establishing scientific evidence with clinical back up for the efficacy of each one and after this only the product is sent to the health supplement market. Our new product Shoden – the detoxified highly bioactive ashwagandha extract is ready for launch at SSW 2018 [Las Vegas]. More research on visceral fat reduction and weight management and acute pain management is on the way,” he concludes.

By Robin Wyers