Hexagon Nutrition Limited — Business Report

Sector: Nutraceuticals / Nutrition & Wellness (Manufacturing + B2C + B2B2C)

1. Overview

Hexagon Nutrition Limited ("HNL" or "the Company") is a research-oriented, integrated pure-play nutrition company incorporated in 1993 under the Companies Act, 1956, originally as Hexagon Chemoils Private Limited and subsequently renamed and converted to a public limited company in 2021. Headquartered in Andheri (West), Mumbai, the Company operates across the entire nutrition value chain—from R&D and product formulation to manufacturing and distribution.

The Company participates in three distinct business verticals: branded wellness and clinical nutrition (B2C), micronutrient premix formulations (B2B2C), and therapeutic and public health nutrition (ESG segment). This diversified model allows HNL to address nutritional needs across a wide population spectrum—from daily supplementation in healthy adults to targeted management of clinical conditions and alleviation of acute malnutrition in vulnerable communities globally.

The Company holds the positioning of one of the largest premix players in India and is among the largest licensed suppliers of Micronutrient Powders (MNPs) under UN programmes globally. Products have been exported to over 75 countries in FY2025 and the nine months ended December 31, 2025.

The Company is promoted by the Kelkar family (Arun Purushottam Kelkar, Subhash Purushottam Kelkar, Vikram Arun Kelkar, Nikhil Arun Kelkar, and Aditya Kelkar), supported by institutional investor backing. All five promoters and two promoter group members collectively hold 89.40% pre-IPO equity.

2. Business Model and Revenue Streams

Revenue Segmentation (FY2025)

Segment Deep-Dive

1. B2C (Branded Nutrition): The Company markets branded wellness and clinical nutrition products targeting adult wellness, weight management, pediatric nutrition, and critical/clinical care. Products are sold through offline channels (hospitals, pharmacies, general trade) and online channels (e-commerce). Branded products are exported to 14+ countries.
2. B2B2C (Premix Formulations): This is the largest revenue segment and HNL's foundational business. The Company supplies customised vitamin and mineral premixes to leading Indian and multinational FMCG companies for fortification of malted beverages, biscuits, dairy, spreads, flour, and edible oils. The client base spans global beverage companies, dairy cooperatives, and international development organisations. This segment offers repeat revenue characteristics given the embedded nature of premix formulations in customer product recipes.
3. ESG Segment (Therapeutic Nutrition — RUFs & MNPs):

• Ready-to-Use Foods (RUFs): Nutrient-dense foods in paste form used for treatment of severe acute malnutrition (RUTF) and moderate acute malnutrition (RUSF) in children. Supplied through long-term arrangements with international health organisations and government health ministries.
• Micronutrient Powders (MNPs): Supplied to UN agencies and Ministries of Health for home food fortification programmes targeting micronutrient deficiency in vulnerable populations.

Revenue Mix Trends (₹ cr)

• The B2B2C segment regained share in FY2025 after a dip in FY2024, recovering to 47.6%.
• The B2C segment has been consistently growing as a share of the mix, signalling brand-building traction.
• The ESG segment is variable, reflecting the lumpy nature of UN/government tender-based procurement.

Customer Concentration and Export Dependency

• Top 10 customers contributed ₹149.05 Cr to revenue in FY2025 (~45.9% of total revenue).
• Exports constituted 55.82% to 63.82% of revenue from operations across the reported periods, reflecting high international exposure.
• Products are exported to over 75 countries, providing geographic diversification within the export base.

Capital Efficiency

The Company has demonstrated a consistent improvement in capital efficiency across all four periods, with EBITDA margins expanding from 6.17% in 2023 to 14.03% in 9M2026 — a 790-bps improvement over three years.

3. Products and Service Portfolio

3A — Branded Products (B2C)

The Company's branded nutrition portfolio is built around four core brand franchises:

Recent product launches (FY2023–FY2025):

3B — Premix Formulations (B2B2C)

HNL is one of India's largest premix players, formulating and supplying customised vitamin and mineral premixes to:

• Global and domestic malted health beverage companies
• Dairy cooperatives (UHT milk, cheese, butter fortification)
• Biscuit and snack manufacturers
• Flour and edible oil fortification programmes
• Nutrition supplement manufacturers

Premixes are formulated in close collaboration with clients to maintain sensory attributes (taste, texture, colour) while enhancing nutritional profiles.

3C — Therapeutic Nutrition / ESG Segment

The Company is a licensed supplier of:

• RUTF (Ready-to-Use Therapeutic Food): Dense paste-format product used in UN and NGO treatment programmes for severe acute malnutrition in children under five.
• RUSF (Ready-to-Use Supplementary Food): Moderate acute malnutrition supplementation.
• MNPs (Micronutrient Powders): Sachets of vitamins and minerals for home food fortification; distributed through UN agencies (UNICEF, WFP) and Ministries of Health.

This segment positions HNL as a significant participant in global food fortification and public health nutrition, providing institutional revenue with multi-year contract visibility.

3D — Manufacturing Infrastructure

Capacity Utilisation: 28.76% in 9M FY2026, 30.03% in FY2025. While capacity utilisation appears low, this reflects the high capital density of food-grade premix and therapeutic nutrition manufacturing, where facilities are built to serve order-driven rather than mass-market demand.

R&D Investment:

Manufacturing facilities hold certifications including FSSC 22000, GMP, ISO 9001:2015, and Halal Certification from multiple international accreditation bodies.

4. Key Business Strengths

• Two-plus decades of specialised expertise in micronutrient premix formulation since 1993, with a first-mover advantage in an early and nascent segment of the Indian nutrition industry.
• Integrated value chain spanning R&D, product development, manufacturing, and omnichannel distribution — enabling quality control from raw material procurement to finished product.
• Diversified revenue model across B2C branded nutrition, B2B2C industrial premix, and ESG institutional segments, providing multiple earnings levers with varying cyclicality profiles.
• Export scale and global reach with products exported to 75+ countries, including long-term institutional contracts with UN agencies and government health ministries.
• Top-tier client relationships in the premix B2B2C segment with marquee Indian and multinational FMCG companies, generating recurring revenues and high switching costs once premix formulations are embedded in client recipes.
• Conservative financial structure with a Debt-to-Equity ratio of 0.14x (FY2025), providing significant headroom for balance sheet-supported growth.
• +Established brand equity with PENTASURE and PEDIAGOLD as recognised clinical/wellness nutrition brands in hospital and retail pharmacy channels.
• Professional management with strong institutional backing, with the promoter family having domain expertise across multiple nutrition sub-segments and institutional investor participation adding governance credibility.

5. Future Growth Strategy

• Deepening the B2C branded portfolio through launch of new clinical and wellness nutrition products across adjacencies such as renal care (Pentasure Reno), fibre supplements, and advanced protein formats to capture the growing therapeutic nutrition market in India.
• Expanding the branded distribution network by scaling offline coverage in hospitals, clinics, and pharmacy chains across tier-2 and tier-3 cities, and accelerating online/D2C growth through e-commerce and digital channels.
• Scaling the premix B2B2C client base by deepening relationships with existing global FMCG clients and adding new clients in the packaged food fortification, dairy, and beverages categories, both in India and internationally.
• Capitalising on the global food fortification mandate driven by UN agencies, World Food Programme, and government nutrition policies in developing nations — particularly for RUF/MNP products under the ESG segment.
• Internationalising the branded portfolio by extending B2C product exports beyond the current 14-country footprint, leveraging the Company's existing international manufacturing presence in Uzbekistan and its 75+ country export network.
• R&D-led product differentiation with ongoing investment in novel premix formulations, clinical nutrition specialisations, and therapeutic products addressing chronic disease nutrition, supporting premium pricing and margin expansion.
• Leveraging the listing to enhance brand visibility, institutional credibility, and organisational governance — supporting new customer acquisition, talent attraction, and potential future capital raises if growth initiatives require.