NEW INDIAN EXPRESS
Friday, Mar 25, 2005
By SANGEETHA CHENGAPPA

Sami Labs plans Rs 200 Crore IPO

Bangalore . March 25: Sami Labs Ltd. a research oriented, transnational health Science Company, is planning to go public next year and is expecting to mop up Rs 200 crore.

Speaking to Express, Founder and MD Muhammed Majeed said. “The money acquired through the IPO will be channelised towards the acquisition of 2 European companies - a neutraceutical distribution company and a research group which manufactures herbal based products.

The company has been regi­stering a growth of 40 percent year on year with almost 10-12 percent of its income being spent on R&D. Having clocked a turnover of Rs 259 crore for year ending December 2004, the company' is projecting a turnover of 450 crore by De­cember 2005 'We are setting up 2 phytochemical extraction. Units in Karnataka and Andhra Pradesh at a total cost of Rs 48 crore “said Majeed.

Elaborating, he said the phytochemical extraction unit will be set up on 4.5 acre at Ge­nome Valley , Hyderabad and is scheduled to be completed in 120 days by July 2005 at a cost of Rs 8 crore. The unit in Karnataka will be set up on 19 acre at Dabaspet (between Peenya and Tumkur) and will house two separate facilities at a cost of Rs 40 crore. Sami received its first US patent in 1996 and now the number of pate­nts awarded to the group has risen to 14. More than 25 additional us and international patents are in the pipeline.

Sam! Labs today is a multina­tional, multi-locational com­pany exporting fine chemicals, standardized extracts, cosmeceuticals, nutraceuticals. Specialty chemicals and bulk drug intermediates.

The company has manufacturing facilities at Nelamangala, Singasandra, Kunig­al and Mysore in Karnataka. The Nelamangala facility also accommodates the bio­technology plant. The com­pany is in the process of setting up a marketing office in Bangkok to cater to the Pacific Rim countries.

LAB REPORT

•  Sami Labs plans Rs 200Crore IPO

•  Turnover last fiscal: Rs 259 Crore

•  Projected turnover: Rs 450 Crore

•  Percentage of income spent on R & D : 10%

•  Planning 2 Phytochemical extraction units in Karnataka and AP at a cost of Rs 48 Crore

•  Received first US patent in 1996.