Positive Gems is betting big on emerging nutraceutical market

India’s nutraceutical and pharma industry has grown post pandemic, with more individuals turning to supplements to boost immunity. As per a report from FSSAI, the nutraceutical market is projected to reach around $10.19 billion by 2026, marking a substantial increase from the $4 billion recorded in 2020.

Given the rapid growth of India's nutraceutical industry, it's not entirely unexpected to witness startups hopping aboard this surging trend. 

Gurugram-based Positive Gems, a pharmaceutical and nutraceutical company, is also trying to make its mark in the segment. And, behind the company’s success is 24-year-old entrepreneur Gagan Manchanda. The founder believes Positive Gems’ products, especially its soon-to-be-launched multivitamin dressing, will be a game changer. 

According to the founder, currently, there is no product available in the market for vitamin-infused food dressing in India or anywhere in the world. 

“In the United States, some vitamin sprays are available for oral consumption. Our product is similar, but all of those have been marketed as oral sprays to be taken directly into the mouth. However, no one has yet come up with the idea of creating something that can be added directly to meals to enhance their nutritional content,” he says.

Established in 2022, Positive Gems has achieved a revenue of Rs 25 crore within just one year. The company is also registered in Delaware, United States. Speaking to SMBStory, Manchanda reveals that the company aims to reach Rs 100 crore in revenue by the end of FY24.

Turning adversities into opportunities

Like many entreprenuers, Manchanda felt the full force of the pandemic as the nationwide lockdown came into force two days after he opened a gym in Delhi. 

For the entirety of 2020, Manchanda was exploring ideas to start a business when he came across the booming supplements and nutraceutical industry. 

"Post-COVID, health became a top priority, and the demand for supplements and nutraceuticals surged as people favoured them over traditional pills. I did some research, and it seemed clear from various reports that this market was set to expand. I thought to myself, 'This could be a fantastic industry to get into,” Manchanda explained.

However, Manchanda didn’t have any experience in this industry, and since it was related to the health segment, a lot of regulations and licensing needed to be followed. The nutraceutical sector is a grey area since nutritional supplements can be chemically synthesised.

Also, the market has several established players like Amway, Modicare, and Herbalife.

Despite the challenges, he decided to try it and started PstGems Pvt Ltd in 2022. 

Manchanda initiated his journey by procuring products from an authorised pharmaceutical manufacturing company located in Baddi, Himachal Pradesh, and introduced them to the market under the Positive Gems brand. 

Prior to this venture, Manchanda had been engaged in freelance marketing for various companies, which provided him with expertise in performance marketing. Consequently, he took charge of the brand's marketing efforts himself.

"We initially focused on the performance segment and attracted clients through Facebook marketing, followed by word-of-mouth referrals. In the first few months, our business performed exceptionally well, to the point where we struggled to keep up with the influx of orders," Manchanda explains.

For Manchanda, the return on advertising spend (ROAS) for marketing was 35% while a 3.5% ROAS is considered good.

Contract manufacturing presented its own set of challenges. Manchanda points out that such manufacturers often struggle to manage large order volumes simultaneously, as they serve multiple clients. By the middle of 2022, Positive Gems was experiencing remarkable growth, receiving approximately 8,000 orders per month. 

Recognising this trend, Manchanda decided to reinvest the earnings to acquire a manufacturing firm with all the necessary certifications and licensing in place, a move that required an investment of around Rs 65 to Rs 70 lakhs. The founder declined to disclose details of this company. 

Manchanda says he has also filed for FDA factory registration. Today, Positive Gems processes around 16,000 orders each month.

Meeting the consumer demand

After the launch of the performance segment, Positive Gems also launched multivitamins and hair care segment. Performance and multivitamins are the company's focussed sectors, the founder says. 

Priced between Rs 499 and Rs 1,500, Positive Gems’ products are available both online and offline. The company recently opened a store in the Rohini area of Delhi and plans to open four more stores, one each in Delhi, Jaipur, Ahmedabad, and Mumbai. 

Positive Gems will also enter the aerosol spray market soon. 

Regarding the industry challenges, Manchanda emphasises that Positive Gems avoids engaging in price wars and instead prioritises quality. This strategic approach positions them for anticipated growth in the future.

After enduring the hardships of pandemic-induced lockdowns, Manchanda now manages not only a pharmaceutical and nutraceutical brand but also runs a thriving gym.