The Financial Express

October 25, 2003
   

Sami Labs Plans IPO, Hires E&Y To explore Options



Mumbai

Bangalore-based Sami Labs has appointed Ernst & Young (E&Y) to explore options for an initial public offering or private placement of equity to invest close to Rs 100-200 crore over a year.

“We are currently in the thought process and E&Y would complete the first phase of their report by December 31, 2003 and the final report by March 31, 2003 to enable us decide om the options,” Sami Labs chairman and managing director Muhammed Majeed said.


E&Y will work on the consolidation of various group companies in the first report. The company has already undertaken a streamlining exercise to unify operations in Europe, Japan and US under the Indian umbrella, Mr Majeed said.

He was speaking at a press meet to announce the US patent office’s aaproval for the company’s three new ingredients –tetrahydrocurcuminoids (dermatology), coleus oil (infective) and zealutien ( geriatric ophthalmology).
“The three new active ingredients in nutraceuticals and cosmeceuticals formulations have a combined estimated market size of Rs 20 crore,” he added. The company has a total of 27 international patents of which 15 are awaiting approval. It is targeting a turnover of Rs 70 crore.

The company hopes to capture five per cent of the total market in the next three years with these discoveries. It has so far invested close to Rs 60 crore in four production units at Bangalore, Singasandra, Kunigal and Mysore.
Meanwhile, Sami Labs is pursuing the aromas and fragrances market in India, pegged at Rs 1,200 crore. It is in the process of setting up a fully automatic plant to cater to the global