Sami Labs, the Bangalore-based nutraceuticals company (group turnover Rs 250 crore), is expanding its global footprint.
The company, after focusing on US and Europe, is now eyeing South America with a manufacturing base in British Guyana and a marketing presence in Brazil.
Currently, Sami Labs has four manufacturing facilities in India and subsidiaries in the US, Japan, South Africa and Dubai.
“We plan to set up subsidiaries in both countries with investments totalling $2-3 million,”said Sami Labs MD Muhammed Majeed.
The company will adopt a ‘hub and spoke’ model for market penetration . British Guyana provides easy access to Latin American countries while Brazil opens up research and marketing opportunities, he added.
For the domestic market, the company will upgrade its manufacturing facilities in Karnataka and set up two phyto-chemical extraction units in Andhra Pradesh, each at a cost of Rs 10-12 crore. With 17 patents to its credit, the company’s R&D spend is around 8-10 per cent of its revenue.
Ernst & Young, a consultancy, will raise private equity and negotiate with institutional investors.