Ingredient technology firm Arboreal Bioinnovations is investing ₹125 crore to expand manufacturing in Lucknow and Gujarat. This move follows a surge in revenue to an annualised run rate of ₹500 crore, driven by demand for protein and sugar-reduction solutions. Backed by a ₹230 crore funding round, the company is diversifying its portfolio beyond Stevia to supply major brands like Hindustan Unilever.
Arboreal Bioinnovations is moving to scale its manufacturing operations with a new investment of ₹125 crore. The Lucknow-based company, which focuses on ingredient technology, plans to use these funds to increase production capacity at its home base in Uttar Pradesh and through a new protein-focused joint venture in Gujarat over the next two years.
This expansion comes as the firm reports a significant rise in financial scale. The company’s annualised revenue run rate is now tracking between ₹455 crore and ₹500 crore, marking a sharp increase from the ₹197 crore recorded in the 2026 fiscal year. This growth is being driven by higher demand from consumer brands for protein and functional food ingredients.
Transitioning to a Broader Portfolio
When the company started in 2015, it was primarily known for its work in Stevia and natural sugar reduction. However, management has shifted the business model to move away from relying on a single ingredient. The firm is now developing a wider range of functional ingredients, including proteins and fibres. To support this, the company has allocated ₹50 crore to ₹60 crore for research and development to improve its intellectual property and create new food applications.
The company is using advanced technology, such as enzymatic hydrolysis and fermentation, to engineer ingredients that can be added to daily food staples like flour or dairy without affecting their taste. This strategy has helped the business secure supply agreements with large consumer goods companies, including Hindustan Unilever for its Horlicks Protein line, as well as smaller nutrition brands like SuperYou, Cosmix, and Slurrp Farm.
Funding and Execution Risks
The ambitious manufacturing rollout is supported by a recent capital infusion of ₹230 crore from investors including EAAA Alternatives, Omnivore, and Rainmatter. While the company is expanding, the success of this strategy will depend on the effective execution of the new production facilities and the ability to maintain supply chain stability for its network of approximately 200 customers.
For observers, the key monitorable will be the timely completion of the manufacturing plants in Lucknow and Gujarat. As the company pivots toward a broader portfolio, the ability to manage production costs and maintain product quality will be crucial to sustaining the current growth trajectory in a competitive food ingredients market.