Arboreal Bioinnovations plans ₹125 crore capacity expansion as protein demand rises

Lucknow-based ingredient supplier Arboreal Bioinnovations will invest ₹125 crore over two years to expand manufacturing in Lucknow and Gujarat, targeting demand for protein and sugar-reduction ingredients. The company supplies brands including HUL’s Horlicks Protein.

— Source publishedSun, 20 Sept, 2026, 16:01 IST·First seen Sun, 20 Sept, 2026, 16:12 IST·Source The Hindu BusinessLine

What happened

Lucknow-based ingredient supplier Arboreal Bioinnovations will invest ₹125 crore to expand Lucknow and Gujarat production as demand for protein and

Key facts

  • ₹125 crore manufacturing expansion over two years
  • ₹230 crore funding raised
  • ₹50-60 crore planned R&D investment
  • FY26 revenue of ₹197 crore
  • ₹455-500 crore annualised revenue run rate

Why this matters

Arboreal’s ₹125 crore expansion points to tighter competition for protein and sugar-reduction ingredients, giving food and nutrition operators more formulation capacity to support high-protein and lower-sugar launches.

What to watch

  • Named customer contracts or volume commitments tied to the ₹125 crore expansion.
  • Commissioning schedule, capacity added, utilization rates and any construction or regulatory delays.
  • New protein-fortified or reduced-sugar launches from major Indian food and beverage brands, especially HUL and peers.
  • Changes in protein ingredient, sugar substitute and agricultural input prices.
  • FSSAI guidance or enforcement affecting nutrition claims, sweeteners or front-of-pack labeling.