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Sunday, June 8 1997

New Ambadi fails in `health food', enters cosmetic sector

Nitya Varadarajan

Chennai, June 7: When Multinal, a health food manufactured from the algae Spirulina by New Ambadi Estates Pvt Ltd, failed to tickle the taste-buds of fitnes freaks four years ago, there was no sign that the product would ever take off.

However, New Ambadi, the first Murugappa group company set up in 1942, now has pharmaceutical firms including American Remedies and Recon apart from some drug multinationals queuing up for Multinal.

Now the company is planning to launch a cosmetic using spirulina in July-August that is supposed to do wonders in skin care including allergies, removing pimples and also as an application for burns. Spirulina is going to be launched in lotion and ointment form with aqueous and oil bases.

``We got the idea from the Japanese, who buy spirulina from us for cosmetic applications,'' New Ambadi marketing manager (algal division) D Ganesan said. The Japanese also extract beta-carotene and other carotoids from the algae for medical applications, something which New Ambadi R&D is also working on.

The company has taken another leaf from the Japanese book and is working on the extraction of Phycocyanin, an anti-carcinogenic food preservative. The concept of the algae as a health food was played up when it was added to the popular Chyavanprash and promoted through doctors.

Multinal got a good report from doctors and patients after two years of doing the rounds. ``The concept of a health food is still new in the Indian market, unlike the west,'' said Ganesan. ``Such products have to meet with approval from doctors before awareness can spread. It will take at least five years for the Indian to buy health foods over the counter.'' the company is selling Multinal CH (with Chyavanprash) also through doctors - and the response was enthusiastic, Ganesan claimed.

The ointment and lotion will be promoted through dermatologists and cosmetologists. Trial runs have already been conducted through beauty parlours.

New Ambadi is planning to launch a biscuit next year, using spirulina. The strategy of value-addition paid off and domestic demand is steadily growing as also exports.

Starting off with a manufacturing capacity of 3 tonnes a year, the company is now planning to manufacture 120 tonnes this financial year, half of it for exports. The turnover is expected to be around Rs 3.2 crore. The market demand within the country is 500 tonnes per annum.

Initially Multinal was introduced into the market as a powder bare of dressing, with all its natural content intact. Multinal is good for arthritis, diabetes, for the eyes, for infertility, oral cancer, malnutrition. It balances the fatty acids in the body (high density lipoproteins with low density lipoproteins), and is therefore good for the heart. It has 60 per cent protein content with other minerals like zinc, selenium and tocopherol which reduce toxicity levels in the blood and prevent ageing. It builds up the immune system.

Multinal uses the elephant as a logo for market promotion - symbolising health, longevity, memory, perfect vision. A normal child can take 1 tablet of 500 gms per day for health, and adults can take two, (without prescription). Cancer patients may have to take more.

The only other manufacturer in India of Spirulina is Ballarpur Industries, which introduced the project last year on a minor scale. Though the tablet Multinal sells at Rs 15 for a strip of ten and is more expensive than the competitor's product, Ganesan is confident that New Ambadi will remain market leader. ``We have conducted clinical trials with our products with reputed universities abroad (as in the case of oral cancer) and our credibility with the medical fraternity is very high. Few companies are willing to spend the time, effort and money involved in such trials,'' he said.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.

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