Clensta to set up unit in Hyderabad

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GLOBAL MARKETS: Clensta CEO Puneet Gupta is eyeing 30 overseas markets in addition to catering to the domestic market.

Hyderabad: Delhi-based healthcare company, Clensta, which makes waterless personal hygiene products, is planning to set up a manufacturing unit in Hyderabad. The company is currently in talks with the Telangana government and is in the process of identifying the location.

Clensta CEO Puneet Gupta told Telangana Today, “We could possibly invest about $5 million (around Rs 35 crore) into the facility. We have zeroed down to Hyderabad for our facility and it will be our first company-owned unit. We could generate about 200 direct jobs and about 600 indirect jobs. The unit will have an initial capacity to make 2 lakh bottles per day. We will continue to use raw material for our production that is sourced from within India.”

 

On what advantages did he see in Hyderabad, he said, “Hyderabad gives us the right manpower and we also expect to get Telangana government’s support. We anticipate the unit to be operational by 2020-21.”

The private equity backed company currently has a contract manufacturing facility in Nashik, Maharashtra. Once the Hyderabad facility is operational, the entire production will move to the city.

R&D-based products

He said, “We currently offer waterless shampoos and body bath products. We had been catering to defence and para-military forces, space staff, hospitals, adventure travellers, long distant travellers and home care companies. India faces water scarcity and environmental threats besides health and personal hygiene issues. Through our products, we have already saved more than 6 million litres of water through our waterless products.”

On future product pipeline, he disclosed, “We are now working on waterless toothpaste so that one can brush without water. Our fourth product is going to be Clensta body solution that will keep mosquitoes away for 24-36 hours. We are working with National Institute of Malaria Research. We are going to use chemical compositions complying global standards meeting USFDA and US Pharmacopeia norms. Both toothpaste and the mosquito repelling solution will be ready by end of 2019.”

Sharing other innovations, he said, “We are even working on a project on rubber removal from runways at airports. A lot of rubber deposition happens on runways while aircraft take off and land (estimated to be about 2.5 kg each time). This increases the possibility of accidents. Currently, pressurised water is used to remove the rubber. We are looking at waterless spray that will remove rubber without water, reducing incidents on runway.”

The company is currently acquiring space in IIT Delhi for research. The company’s products had been recognised by NATO.

Wider markets

The company is expanding its distribution network across Telangana, Andhra Pradesh, New Delhi, West Bengal, Uttar Pradesh and Rajasthan. The company is also planning to tap into tier-2 and tier 3 cities besides making its products available through e-commerce platforms such as Amazon and Flipkart.

He added, “We have a subsidiary in Netherlands and are going to begin operations in the UK soon. In addition to catering to the domestic market, we are exporting to 30 countries including the UK, Saudi Arabia, Qatar, Morocco, Vietnam, Switzerland and France. Exports which contribute about 10 per cent now will go up to 40 per cent by March 2020.”

Funding and revenues

Clensta is looking at a revenue of $10 million (Rs 70 crore) in 2019 from across markets with major revenues coming from defence, hospitals and long distance travellers (travelling in airlines and railways).

The company received research and innovation grants from the Department of Science and Technology, Ministry of Science and Technology and raised funds through angel investors (IAN Fund in October 2018) and private equity companies.