Financial Daily from THE HINDU group of publications
Thursday, Feb 24, 2005

News
Features
Stocks
Port Info
Archives
Google

Group Sites

Corporate - Outlook


Sami Labs eyes Rs 2,000-cr turnover in five years

C.R. Sukumar

Hyderabad , Feb. 23

SAMI Labs Ltd (SLL), the Bangalore-based Rs 250-crore nutraceuticals company, has firmed up a short-term business plan of reaching Rs 450-crore turnover by next year-end and a long-term plan of attaining Rs 2,000-crore turnover in the next five years.

The company plans to upgrade the existing manufacturing facilities, set up two phytochemical extraction units in Andhra Pradesh, each at a cost of Rs 10-12 crore, and one dosage form in Karnataka.

SLL is in the process of building a worldwide core marketing team for introducing its branded products through multi-level marketing (MLM) model. It has lined up many nutraceutical and cosmeceutical products under the brand `Johar'.

The SLL Managing Director, Dr Muhammed Majeed, told Business Line that plans were to raise funds through an initial public offering mid next year to part finance the capital expenditure programmes.

Before that, the company may privately place equity with institutional players. Ernst & Young was appointed to negotiate with a few institutional investors for the purpose. A decision on the issue would be taken in the next couple of months, he said.

SLL has four manufacturing facilities in Karnataka and subsidiaries in the US, Japan, South Africa and Dubai.

"We have been registering a growth of 40-45 per cent in business volumes per annum for the last few years. We need to add at least 200 per cent more manufacturing facilities to what we have now to meet the expanding demand for our products," Dr Majeed said.

The company is spending 8-10 per cent of its revenues on R&D. It has obtained 19 patents and 20 were in the pipeline, Dr Majeed said. It has also initiated clinical trials on some of its existing products, to tap a part of the nutraceutical market in Japan, the US and Europe.

According to Dr Majeed, the company has initiated negotiations with the Andhra Pradesh Industries Department and the AP Industrial Infrastructure Development Corporation for setting up manufacturing facilities in the State.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page


Stories in this Section
NTPC gets board nod for Rs 8,693-cr Barh power plant


L&T bags Rs 130-cr order from Kuwait Olefins
Avon Organics allots warrants
Bosch CRDi for M&M's new Scorpio
Pantaloon makes open offer for 20% in Galaxy
TVS Logistics buys UK co CJ Components
Fidelity, others take 5% stake in D-link
IOC in talks to acquire French co Maurel & Prom
TVS Motor plans units in Indonesia, Himachal Pradesh
Mahindra ties up with Renault — Joint venture to make Logan cars in India
Liberty to diversify into ceramics biz
L&T bullish on embedded software, engg services
Sami Labs eyes Rs 2,000-cr turnover in five years
Narayana Murthy B-Schools' favourite, again


The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription
Group Sites: The Hindu | Business Line | The Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |

Copyright 2005, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line