Tuesday, July 12, 2005

Sami Labs plans Rs 100 crore expansion

THIRUVANANTHAPURAM: Bangalore-based Sami Labs Ltd, a health science company focussing on medicinal plants-based generic products, has drawn up expansion and acquisition plans involving an initial investment of Rs 100 crore.

"The company is looking for expansion through acquisition, especially in the European market. We will be investing close to Rs 100 crore for the programme," Sami Labs CMD, Mr Muhammad Majeed said here.

"The company is betting big on its patented product Forslean , its brand for Coleus Forskohlii extract, an accepted supplement for weight management," he said

In this endeavour, the company had directly associated with 5,000 farmers in Salem and adjoining districts in Tamil Nadu for cultivation of Coleus Forskohlii known as Ban Tulsi in Hindi, Dr Majeed said.

Since sufficient supply of the plant was lacking, the company started experimenting in cultivation in various parts of the country in co-operation with agricultural universities. It had buy-back agreement with the growers, assuring them steady price for their harvests.

Besides, farmers were provided with planting material and loan and insurance protection facilitated, he said. In the first six months of 2005, Sami Labs had recorded a turn over of Rs 326 crore, which was projected to touch Rs 500 crore by the end of the calendar year, he added.