Mumbai: Bain Capital has emerged as the frontrunner to acquire Vitabiotics, UK’s largest nutraceutical company, as the private equity firm looks to bet on growing demand for nutrition, vitamins, minerals, and wellness supplements since the pandemic.
Two other contenders TPG Capital and EQT have opted out of the competitive bidding process, said people aware of the developments.
Founded in 1971 by Kartar Lalvani, Vitabiotics claims to be UK’s largest multivitamin company. The business is currently led by his son, Tej Lalvani — also known for his role as an investor on BBC’s Dragon’s Den — who serves as chief executive officer.
The NRI founders have been seeking a valuation of around £900 million ($1–1.2 billion) for the business spread across the UK, India, and China. However, the waning competitive interest is likely to impact the final price, the people said. The company also exports to 100 countries worldwide.
Mails to Bain Capital and Vitabiotics did not generate a response.
Vitabiotics’ top-selling brands include Wellwoman, Wellbaby, Pregnacare, Menopace, Feroglobin, Immunace, Visionace, Perfectil and Osteocare.
The group’s Indian arm, Meyer Vitabiotics, accounts for around 20% of the total Rs 3,000 crore (£253 million) in annual sales. Within Meyer’s portfolio, Calcimax holds a strong presence across paediatrics, diabetes, cardiac care, and women’s health segments, particularly in pregnancy and menopause.
A clutch of buyout funds, including EQT Partners, Carlyle, Blackstone, and Indian drugmaker Lupin, are in discussions to acquire Vitabiotics, ET first reported last December. Other Indian pharmaceutical companies including Zydus, and Sun Pharma, had also evaluated the asset.
Apart from Lupin, several Indian firms including Mankind Pharma and Zydus Wellness had evaluated the opportunity but didn’t pursue it further due to the steep valuation, ET reported.
Some of the potential suitors were only keen to scalp parts of the business, especially the Indian piece. Some of the funds had also formed consortiums to carve out parts of the business that interested then. But the sellers preferred to sell everything together.
” It is a complicated setup with diverse geographies performing on an uneven keen. More over the company ‘s financial performance is facing significant headwinds,” said an official from one of the potential suitors on condition of anonymity.
Houlihan Lockey is advising the promoters in the sale process.
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In 2008, Vitabiotics had acquired Sandoz Asia’s manufacturing facilities in Indonesia, enabling inhouse production of international products while continuing toll manufacturing for Sandoz and Apex.
Bain already has an exposure in the nutrition space with 1440 Foods, a US-based sports and active nutrition brands company that it had acquired in 2023.
Globally, the nutraceuticals market is valued at more than $520 billion and expanding at a compounded annual growth rate (CAGR) of 8-9%. Asia-Pacific, the largest regional market, is growing at about 8.8%. In India, the sector is estimated at about $8 billion and is projected to grow at 11% CAGR between 2023 and 2027.
India’s nutraceutical sector too has attracted increasing investor interest in recent years, with investments in the space rising 2.5 times between 2020 and 2023, compared with the 2016–2019 period. It outpaced the 1.7-fold increase in the global market over the same timeframe, according to consulting firm Kearney.
The surge has been fuelled by higher disposable incomes and growing health awareness in the aftermath of the pandemic, making daily supplements more common in Indian households. The report added that digital marketplaces and direct-to-consumer platforms have further accelerated adoption by improving accessibility to nutraceutical products.
The sector has also seen a wave of mergers, acquisitions, and private equity investments, as pharmaceutical and FMCG companies expand their presence in the preventive healthcare segment.
Recent deals include USV’s purchase of a 79% stake in Wellbeing Nutrition—backed by Fireside Ventures and Hindustan Unilever—at a valuation of about Rs 1,583 crore; Hindustan Unilever’s acquisition of the residual 49% stake in plant-based nutrition brand OZiva, valuing the D2C brand at about Rs 1,682 crore. Consumer goods maker Marico acquired a 60% stake in plant-based protein startup Cosmix at an equity valuation of Rs 375 crore.
Bain has a presence in the Indian pharma & healthcare sector through its buyout of Emcure Pharma in 2013. Bain made a partial exit through Emcure’s Rs 2,000 crore IPO in 2024. Currently, BC Investments IV, an affiliate of Bain Capital, holds about 4% stake in Emcure.
Since starting operations in India in 2008, Bain Capital invested in companies like Manappuram Finance, Dhoot Transmission, Hero MotoCorp, RSB Transmissions, Porus Labs, 360one Wealth, CitiusTech, J.M. Baxi and Quest Global.
