Tasty treat

Mumbai, March 17: Zydus Cadila group company Cadila Healthcare Ltd is acquiring a 14.96 per cent stake in Carnation Nutra-Analogue Foods Ltd, the manufacturer of the country’s largest selling margarine, Nutralite, for an undisclosed sum.

Cadila will also make an open offer to acquire an additional 20 per cent stake in the company.

Carnation posted a turnover of Rs 30 crore for 2005-06 and has a network of 350 distributors across the county.

Following the acquisition, Nutralite will be marketed by Cadila’s consumer products division, which currently markets the group’s flagship sweetener brand Sugar Free. Nutralite margarine has a market share of 60 per cent.

Speaking on the development, Pankaj R. Patel, chairman and managing director of Cadila Healthcare, said, “Over the past few years, our focus has been on supporting healthy lifestyles and this forms an essential part of our healthcare business. We have market leadership in the sweetener segment through our brand Sugar Free and this acquisition entails an excellent synergy in offering a healthy dietary supplement.”

Nutralite, according to Patel, is virtually cholesterol free and has low saturated fat content compared with butter. Moreover, Nutralite does not contain hydrogenated fats and, hence, is also low in harmful trans fatty acids (TFA’s).

Patel is optimistic about Nutralite because with the increasing incidence of lifestyle diseases in India, people have become more health conscious. There is also a growing demand for dietary options that support a healthy lifestyle.

Sugar Free is now a market leader in the low calorie sweetener segment with a share of over 70 per cent. The brand has strengthened its presence with Sugar Free Dlite ? a low-calorie healthy drink which offers 85 per cent less calories than all sugar-based soft drinks and juices.

The company has also launched Sugar Free Natura ? the sucralose-based sweetener made from sugar but without the calories. With Nutralite now in its fold, Zydus hopes to consolidate its position among health and fitness conscious consumers.