Mumbai-based Naturell, which makes nutritional bars under the brand name Rite Bite, is looking to raise about $5 million in equity over the next two months.

The company has initiated talks with a few private equity/ venture capital players in this regard.

The company, founded in 2006, plans to use the funds to expand the capacity of its manufacturing unit, besides launching newer categories catering to the growing health-conscious consumers in the country. It also plans to aggressively expand its retail and distribution network.

Currently, Rite Bite is available in gyms, supermarkets and pharmacy stores. The plan is also to tap the e-commerce channel and mom-and-pop stores as a step to move from niche to mass market. The company has recently entered the savoury segment with protein chips.

Awareness programme Vijay Uttarwar, Founder and CEO of Naturell, said the company will also increase its marketing spends as it plans a pan-India roll out of its new product categories. “We will be working towards creating awareness programmes and events around the usage of nutrition bars. These products are ideal for working professionals, weight watchers, fitness freaks and people with busy lifestyle where they can have healthy snacks on-the-go.”

Uttarwar claims that Rite Bite is the market leader in the entire granola bar/ nutrition bar market with over 55 per cent market share. However, the market is very small and nascent at present at a mere ₹100 crore. Besides Naturell, General Mills, Nouveau Medicament and Xterra Nutrition are the other players in the market.

The granola/ nutrition bar market is expected to grow at 35 per cent to reach ₹150 crore in 2018-19, said Uttarwar.

According to a recently published report by TechSci Research, ‘India Nutrition Bars Market Forecast and Opportunities, 2020,’ the nutrition bars market in India is anticipated to grow at a CAGR of more than 29 per cent during 2015-20 on account of increasing working population, rising per capita expenditure, growing incidence of lifestyle diseases and surging youth population.

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