Thursday, Dec 30, 2004

Sami Labs to expand operations in Eu, Lata

THIRUVANANTHAPURAM: Standardised herbal extracts, fine chemicals and nutraceuticals maker Sami Labs has decided to expand operations in Latin America and Europe in the immediate future keeping in tune with its strategy to consolidate its position in these markets.

The European marketing operations of the $60 million company will be headquartered in the UK , and is likely to be based either in London or Birmingham .

Sami Labs MD Dr Muhammed Majeed said the effort in Latin America and Europe would be primarily marketing-oriented, with the objective of a bigger market share in those markets, while the R & D efforts will continue to be Bangalore-based.

The company is also likely to announce an IPO within the next two years, Dr Majeed said, pointing out that one of the reasons why the company did not offer equity to the public till now was that the company was never short of funds.

“Rather, the question is how efficiently the money raised through the IPO would be utilised,” he said.

Sami Labs has 16 US patents, four international patents, and spends 10% of its turnover in R & D. The company's manufacturing facilities are based at Kunigal, Mysore , Neelamangala and Singasandra.

Dr Majeed said the US market was currently contributing about 50% of the company's revenues, and that the Japanese market was growing so robustly for the company that it was expected to overtake the revenues from the US market.

Sami Labs, which has traditionally concentrated on foreign markets, is also turning its attention to the domestic market in a big way and the company is launching its nutraceutical product range in India .

Dr Majeed said the company was currently having a presence in most of the major international markets with its standardised speciality phytochemicals, nutraceuticals, cosmeceuticals and biotech products.