October 15, 2003
Source: Business Standard
Tatas eyeing alternative healthcare
Group to focus on ayurvedic medicines, nutraceuticals

Hemangi Balse, Reeba Zachariah in Mumbai
Published : October 13, 2003

The Rs 45,000-crore Tata group is weighing the option of a foray into alternative medicines and nutraceuticals. The group wants to carve out a global presence in these segments. The group's holding firm, Tata Industries, is currently drawing a blueprint for a grand entry into these new-generation businesses.
Various options, such as acquiring an ayurvedic company or setting up a special unit under Tata Tea, are being evaluated. The group is also looking at an increased stake in the Bangalore-based Avestha Gengarine, a biotechnology firm founded by Villoo Morawala Patell, for the proposed foray.

The options

  • Acquiring an ayurvedic company
  • Setting up a special unit under Tata Tea
  • The group may increase its stake in Avestha Gengarine, a biotechnology firm
Tata Industries has quietly picked up a 5 per cent stake in Avestha Gengarine, and has the option of later raising it to 20 per cent.

Sources close to the Tata group told Business Standard: "Alternative medicine is one of the areas that shows promise and the Tata group is looking at getting into it. Once the business plan is firmed up, the intent will be to build up a global presence and not just a local foray."

For all its new business initiatives, the Tata Strategic Management group is advising the Tata group and is also working out a business model for them.

The Tatas will bank on the country's knowledge base in the alternate medicines/nutraceuticals sector, which provides general health benefits as also therapeutic cures for specific health problems. Nutraceuticals, or nutritional supplements, are not only a sunrise sector in the country but also have vast potential globally. For this venture, the Tatas plan to use Tata Tea estates and its expertise/research in tissue culture to grow medicinal herbs. The other areas the group is looking at is logistics and biotechnology.

In the case of biotechnology, the Tatas already have a small presence in Avesthagen. "The research firm has received a patent for a genome for basmati rice. This will enable growing basmati rice in saline water," say sources.

Group company Rallis is also looking at a biotech foray, but has yet to firm up plans.