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Private & Confidential Natural-life Speciality Pvt. Ltd March 2018 An Opportunity to become partner a growing nutraceutical company with a strong product portfolio Table of Contents 01 Summary 03 02 Marketing Rationale 04 03 Market
Private & Confidential
An Opportunity to become partner a growing nutraceutical company with a strong product portfolio
March 2018
Market Opportunity 03 07 Company Overview 05 16 Summary 01 03 Marketing Rationale 02 04 Product Overview 04 11 Positioning 06 24
The Company
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Founded in 2015, Natural-life Specialty Pvt. Ltd. (“Natural-life” or “the Company”) engages into research, development and commercialization of nutraceutical products in India
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The Company offers Sugarlif, a unique organic solution that re-engineers natural cane sugar and delivers a Low Glycemic Index (GI) sugar substitute which has insulin resistance enhancement and fat nullifying properties
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The solution (comprising of natural ingredients such as turmeric, black pepper, cinnamon, ginger, fenugreek, gooseberry and pomegranate) also possess natural antioxidants & phytonutrients in the active ingredients which deal with the fructose at the molecular level, and neutralises the side effect of fructose in human body Opportunity
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To become a marketing partner of a rapidly growing nutraceutical market, with a company that is focused on constant innovation & excellence and believes in the true nature of India’s heritage of naturopathy Marketing Requirements
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The Company seeks to join hands with a nutraceuticals based company having a good marketing and distribution network.
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Looking for precision targeted marketing partner having extensive knowledge of marketing nutraceuticals and functional food product in niche
marketing and advertising solutions designed to expand customer base and increase revenue. Responsible for strategic planning, gaining approval for and implementing marketing strategies to achieve the required objectives. Marketing Rationale
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Through effective commercialization and structured growth plan, the company seeks to expand the reach of its flagship product sugarlif across the globe through a marketing partner company.
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Through constant research & development, the Company plans to grow along with its marketing partner company- its nutraceutical product portfolio with special focus on health problems arising from shifting lifestyle choices
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Considering Natural-Life’s continued growth and expansion of its existing product portfolio in the metropolitan market in India and South East Asia, the Company is expected to grow significantly over the next 5 years
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Through the commercialization agreements of new products, the Company will be able to strengthen its position in nutraceutical market in India and Globally Private & Confidential | March 2018
Source: Company Research
Private & Confidential | March 2018
An established R&D team, with a strong distribution channel combined with manufacturing base that translates into a sustainable business model
sugarlif, the research & development team is working on understanding ancient Tamil Science to develop products that have the ability to neutralize the impact of health problems arising from shifting lifestyle choices
Index (GI) sugar substitute which has insulin resistance enhancement and fat nullifying properties
network of dealers across the major states of Maharashtra, Punjab and Telangana, Biihar, Jharkhand etc.
Asia
approval) to produce Sugarlif products, thereby allowing the marketing partner to focus completely on commercialization of this exceptional technology
Strong R&D Team Established Distribution Channel Established Distribution Channel Manufacturing
Source: Company Research
§ Sugarlif” sugar has no harmful chemicals (like artificial sweeteners) present in it and is prepared by treating the normal cane sugar with colour less and odourless mix of herbs and spices. § “Sugarlif” sugar is not only a healthy alternate to regular sugar in our day to day lifestyle but it is also a healthier option for limitless sweet preparation
Fair
A unique innovative product Exceptional Health Benefit Low GI Properties Result of years of R&D No Harmful Chemicals
§ “Sugarlif” sugar is an innovative product where in a normal cane sugar have been organically re-engineered by blending a colourless, odourless, and tasteless liquid (made out of turmeric, black pepper, cinnamon, ginger, fenugreek, gooseberry and pomegranate) with cane sugar § LOW GI properties coupled with added presence of antioxidants, phytonutrients and with neutralised side effects of Fructose make “Sugarlif” sugar not just good for Diabetic but also a healthy choice for Pre-Diabetic and Health conscious people. §
Sugarlif ensures
§ “Sugarlif” sugar has undergone ten (10) years of all- encompassing Research and Development and Four (4) years of across-the-board product testing in terms of safety and efficacy in many Labs in India and abroad including the number one Glycemic Index Lab in the world called GI Lab, Canada
Sugarlif” Sugar – a Low GI Revolution
Source: Company Research
With Neutralized fructose toxicity
§ With sharp rise in diabetes cases due to lifestyle changes, people are become more and more health conscious and are adapting to low calorie sugar as a result of the same global artificial sweeteners market is expected to exceed US$ 2 billion by the end of year 2024 § The Indian sweetener market is segmented into sugar, high-intensity sweeteners (HIS) and high-fructose corn syrup. The market for HIS is expected to reach nearly US$ 2.3 billion in 2022 at a CAGR of 5.1%
5,2 3,6 4,3 5,2 6,2 7,5 3,5 4,2 5,0 6,0 7,3 8,7 2,1 2,5 3,0 3,6 4,4 5,2 0,0 1,0 2,0 3,0 4,0 5,0 6,0 7,0 8,0 9,0 10,0 2017 2018 2019 2020 2021 2022 Nutra Food Supplements
Growing demand for FMHG market in India
In INR billion Sugar ; 82% High Intensity sweeteners; 9% High Fructose Corn Syrup; 9% Aspartame; 31% Sucralose ; 23% Saccha rin; 21% Cylamates; 11% Ace-K… Stevia; 4% Neotame; 1%
Global High Intensity sweetener market Global sweetener market
§ FMHG market is expanding since Indians too have become conscious about their health and wellness § The demand for "Sugarlif" is expected to grow exponentially as more and more companies from Pharma, OTC, Nutraceuticals etc. are entering into this high growth segment § The current market size of FMHG market in India is approximately INR 10.8 billion and is expected to reach around INR 21.4 billion by 2022 growing at an average rate
§ The number of people with diabetes has risen from 108 million in 1980 to 422 million in 2014 globally § The global prevalence of diabetes among adults over 18 years of age has risen from 4.7% in 1980 to 8.5% in 2014 § Due to increasing diabetic population people have shifted to High intensity sweeteners with major contribution from Aspartame, Sucralose, Saccharin
Source: Industry Reports, General Web Search
0,0% 0,5% 0,8% 2,5% 2,8% 3,3% 3,5% 4,0% 0% 1% 2% 3% 4% 5% Western Europe North America Central and Eastern Europe Central and South America Other Asia and Oceania Africa Middle East China
Global Average
High-intensity sweetener consumption, average annual growth rate by region, 2016-2021
§ Global Artificial Sweeteners Market will exceed US$2 billion by the end of year 2024 (excluding sugar). Artificial sweeteners are also known as High Intensity sweeteners or Intense Sweeteners because they are many times sweeter than regular sugar § The Indian sweetener market is segmented into sugar, high-intensity sweeteners (HIS) and high-fructose corn syrup. The market for HIS is expected to reach nearly US$ 2.3 billion in 2022 at a CAGR of 5.1% given the growing concerns about health and nutrition among the population. § The surge in the number of health-conscious consumers especially in the developing economies and increasing incidence of diabetes and obesity, consumers are now increasingly switching towards artificial sweeteners such as aspartame, sucralose and saccharin over natural sweeteners § Rising demand from food and beverages industries is expected to act as a growth driver for artificial sweeteners market. The global soft drink industry is poised to consume the maximum amount of artificial sweeteners due to increasing demand of diet beverages and low-sugar food for diabetic and diet-conscious consumers § Regulatory approvals by Food and Agriculture Organization/World Health Organization’s Joint Expert Committee on Food Additives (JECFA), European Food Safety Authority (EFSA) and Food & Drug Authority (FDA) to artificial sweeteners are also expected to fuel the demand from end-use industries and consumers
Source: Industry Reports, General Web Search
§ The US and Japan have been pioneers in embracing Nutraceuticals. Western Europe also represents a large market, with strong footprints in Germany, Italy and France. Developing markets like India, Brazil and China are relatively smaller, yet have a huge growth opportunity. Indian market currently has a 2-3% share of the global market § Global Nutraceutical market was valued at US$ 160.6 billion in 2013 and increased to US$ 171.8 billion by 2014. The market is expected to reach US$ 241.1 billion in 2019 at an compounded annual growth rate of 7% from 2014 to 2019 § The Indian Nutraceuticals market is estimated at around US$ 4 billion in 2017 and is expected to grow at a significant CAGR of 21% to US$ 10 billion in 2022. This will likely be fuelled by a significant 25% per annum growth in functional beverages market accompanied by similar potential growth from the other segments
Nutraceuticals in contrast to Pharmaceuticals
Nutraceuticals Pharmaceuticals Works on root causes and take longer time for recovery Relatively more instant in effect Do not have side effects For severe illnesses have side effects Focuses on prevention & wellness Focuses on illness & treatment No prescription needed for buying Sold only on prescription except OTC Needs no approval of FDA Needs approval of FDA
Source: Industry Reports, General Web Search
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Sugarlif is a blend of colourless, odourless and tasteless liquid extracted from various organic ingredients with cane sugar
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The blended product absorbs the properties of the key ingredients and the resultant herbal cane sugar is Low Glycemic index i.e. ~25% less compared to the untreated cane sugar
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Additionally, the herbal liquid used in the preparation of Sugarlif has natural antioxidants, & phytonutrients in the active ingredients with insulin mimicking, insulin resistance and fat nullifying properties which deal with the Fructose at the molecular level, and neutralises the side effect of FRUCTOSE in human body
Product Overview Key ingredients Cinnamon Black Pepper Fenugreek Turmeric Pomegranate Gooseberry Ginger The Process
Proprietary Organic Solution
§ A colourless, odourless and tasteless proprietary organic solution extracted from Fenugreek, Pomegranate, Cinnamon, Gooseberry (Amla), Black Pepper, Turmeric and Ginger using water and no other chemicals or solvents § The organic solution is blended with sugar to lower Glycemic Index (GI) of sugar by 30% and address the fructose toxicity
Source: Company Research
Benefits of sugarlif Less sudden increase in blood glucose
Global Banking Partners
Lower risk of diabetes Lower level of blood Lipids Better concentration power & memory More sustained supply of Glucose to the brain Higher energy level Neutralised side effect of Fructose Healthier blood vessels Better absorption of nutrients by body cells Supports active lifestyle Health Benefits… Resulting in..
Source: Company Research
www.sugarlif.com No, it is not any ARTIFICIAL SWEETNER; No, it is not any LEAF based sugar either…. It is Your Normal Cane Sugar and we have just made it Healthy and named it “Sugarlif” Sugar No, it is not any ARTIFICIAL SWEETNER; No, it is not any LEAF based sugar either…. It is Your Normal Cane Sugar and we have just made it Healthy and named it “Sugarlif” Sugar
ginger lemon, mint and cardamom) to offers a range of pre mixed tea in the following flavours:
and watermelon. The Glycemic Index (GI) of this “Sugarlif” Mixed Fruits Jam is lowered by adding Low GI “Sugarlif” sugar and it can be safely used by diabetics, pre-diabetics and everyone at home
cater to the diabetic market and to attract health conscious people
Premix Tea Jam Other Products
An established R&D team, with a strong PAN India distribution channel combined with contract manufacturing arrangements translates into a sustainable business model
Source: Company Research
100 406 959 1228 4144 8134 9035 1.000 2.000 3.000 4.000 5.000 6.000 7.000 8.000 9.000 10.000
Sugar Sugarlif Saccharin Aspartame Neotame(98%) Steviol glycosides(RA95) Sucralose Price competitiveness across sweeteners
rebased to 100
Source: CCM Data and Business Intelligence
The values depicted above are scaled to 100 since the price differential between Sugarlif vis-à-vis other competitors was too high § Sugarlif is a price competitive product compared to other forms of artificial sweeteners available in the market § With Selling Price at only US$406/tonne, the product expects huge market to cater § Company expects to achieve a healthy EBITDA margins of ~20% with the greater acceptance of product in early sales § Sugarlif has a potential to get recognized in domestic and overseas market because of its ability to address the GI (Glycemic Index) and fructose toxicity.
Source: Company Research
Business Overview
§ Founded in 2015, Natural-life Speciality Pvt. Ltd. engages into research, development and commercialization of nutraceutical products in India § The Company offers Sugarlif, a unique organic solution that re-engineers natural cane sugar and delivers a Low Glycemic Index (GI) sugar substitute which has insulin resistance enhancement and fat nullifying properties § The Commenced operations by outsourcing the sugar production with one of the vendor at Shirval with an annual production capacity of ~400 tonnes/month (scalable up to 2,500 tonnes/month) with a dedicated and professional staff to cater to the clients domestically and internationally § Along with domestic distributors, the Company has signed contracts with distributors in various countries including Malaysia, Oman, Mauritius, Egypt, UAE and the US with monthly sales commitments
The Company has a strong management team with a clear vision and a strategic growth plan
Vision
“Sugarlif” delivers non-toxic and limitless food selections universally via low glycemic index products for the Health Conscious, Diabetic & Pre-Diabetic individuals.
Mission
Sugarlif will be providing the customers a comforting, yet stimulating, product which will help them to relax both their body and mind. Sugarlif will establish itself as a trustworthy product in which everyone can enjoy the sweetness of life, and rejuvenate their energies, their souls, and their lives
Source: Company Research
Dr C. K. Nandgopalan
Director - Research & Development
§ Dr C. K. Nandgopalan has done an extensive study of Ancient Tamil Science in the field of Physiology, Pathology, Medicine, Food & Nutrition and allied sciences. Today he has established himself as specialist in Molecular science, bimolecular value and the subject of toxicology. § 1987, his organisation Revolution the Research Foundation is actively involved in searching answers for number of World challenges facing humanity § Originally a Masters in PSYCHOLOGY, Dr. C.K. Nandgopal moved into the research business in 1987 and soon he carved a niche for himself in the field of food and nutrition and became
His Other Achievements includes: § Producer of Heritage Sanjeevi, the external application which is the highest wound care, burn care and skin care. § Developed number of technologies for water management – Nanneer § Making Natural cane sugar diabetic friendly for the first time in the world, recognised by LIMCA Book of Records 2015. § Making natural salt cardiovascular friendly by neutralising the toxicity. § Universal - The Technology developed for neutralising the effect of excess Nitrogen and Potassium due to use of NPK in Rice and Wheat. “Universal”, answer to the world challenge. § RICHER HARVEST– The first ever organic based plant extract technology for the field of agriculture. Treating the seeds with RICHER HARVEST will provide extra growth and extra yield and provide vigour to the plants against pest. AWARDS AND RECOGINATION: § Winner Award at the Innovator’s Competition for DST- Lockheed Martin India Innovation Growth Program. § Recognition by i3 Expo organised by PSG Institution & PSG College of technology at CODISSIA Trade fair Complex, Coimbatore. § Awarded by LIMCA book of Record for the year 2015 – National record Holder § Awarded Doctorate by European Continental University, State of Delaware , U.S.A § Awarded by Fi & Hi India 2015 for Innovative Ingredients (Visitors Choice Award) at Mumbai and awarded by Asia Book Of Records for the year 2016 § Awarded by Golden Book of World Records for the year 2016 § Awarded by World Record India for the year 2016 § Awarded the Honorary Degree of Doctorate in Record Breaking by World Records University
Source: Company Research
Consistency
Scalability Price Sensitivity Threats of competitors Growth Future funding
Product is a consumption item, not limited to onetime sale so Sales consistency can be maintained. Product has capability to scale-up to cater large target audience in addition to other products like Jams, Sauces, Pickles & other foods Product is less sensitive to Price competition due to health needs which cannot be compromised. The organic solution powering Sugarlif is a proprietary secret, thoroughly tested & cannot be reverse engineered. Growing demand & awareness for Health Further options like series B & C funding will help reduce further risks .
Proof of Concept
¡ To develop a proof of concept and to ensure that the product is viable for human consumption and has the ability to
retain and deliver the benefits to the consumer various tests were conducted
¡ These tests were primarily conducted by SMS Lab Services Private Limited and world renowned GI Labs ¡ Tests suggested that herbal water treated sugar are glycosides which are heat-stable, pH-stable, and not fermentable. The
treated sugar had negligible effect on blood glucose, which is good for people on carbohydrate controlled diet and is beneficial for diabetic nephropathy patients
Source: Company Research
Test Date: January 2015
Test Lab: SMS Lab Services Pvt. Ltd.
Test Results
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Various microbiological tests were conducted on the herbal solution as per IS 10500 -2012 standards
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The sample was found to comply with the drinking water standards as per IS 10500-2012 with respect to Organoleptic and Physical Parameter, General Parameters Concerning Substances Undesirable in Excessive Amounts, Parameters Concerning Toxic Substances, Pesticide Residues and Trihatomethanes
Source: Company Research
Test Date: June 2016
Test Lab: SMS Lab Services Pvt. Ltd.
Test Results
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Pearsons Composition and analysis of foods method was used to determine the level of carbohydrates in herbal treated sugar and the result indicated that 99.97 g of carbohydrates were present in every 100 g of sugar
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The remaining 0.2 g was moisture and there were no fat, fibre or protein components were identified in the herbal treated sugar
Source: Company Research
Test Date: June 2016
Test Lab: SMS Lab Services Pvt. Ltd.
Test Results
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Test results indicated that for every kg
18.4mg
Potassium, 10.3 mg
Chloride, 4.1 mg of Calcium, 7.5 mg of Magnesium, 64.4 mg of sodium, 8.3 mg
Source: Company Research
Test Date: September 2016
Test Lab: Nature B Labs LLP
Test Results
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Benedict's Test was conducted to test the presence of reducing sugars in test solutions
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Test results indicated that herbal water treated sugar had no sucrose but a high amount
reducing sugars, while untreated sugar was majorly sucrose
Source: Company Research
Test Date: March 2017
Test Lab: Micro Therapeutic Research Labs Pvt. Ltd.
Test Results
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The study was performed to evaluate the hypoglycemic effect of herbal water treated sugar in normal albino swiss mice, which was confirmed by estimation of blood glucose and insulin ultrasensitive chemiluminescence method
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Test results indicated that compared to raw sugar, treated sugar showed significant decrease in blood glucose level and significant increase in insulin level
Source: Company Research
Test Date: January 2017
Test Lab: Glycemic Index Laboratories, Inc.
Test Results
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The glycemic index value of LO-GI Sugar was determined in 10 healthy subjects using the standard ISO method (ISO 26642:2010).
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10 subjects (combination of 7 males and 3 females) were studied
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Using the classification
ISO 26642:2010, products with a Glycemic index (GI) less than or equal to 55 are classified as being low GI, those with a GI of 56 to 69 are classified as medium, while those with a GI equal to or greater than 70 are high GI. Results indicated that the herbal treated sugar had a low Glycemic Index of 50±3
Source: Company Research
CONTACT DETAILS Thank you for your time. Website: www.sugarlif.com Mail: info@sugarlif.com Contact: +91 77769 18483 Website: www.sugarlif.com Contact: +91 77769 18483
NATURAL-LIFE SPECIALITY PVT . LTD. F P 302, PL 56A, Ragvilas Society, North Main Road, Koregaon Park, Pune 411001 Maharashtra, India