The New Indian Express
Wednesday, July 13, 2005

Sami Labs to invest Rs 100 Crore for acquisition

BANGALORE: Bangalore based transnational health science company, Sami Labs Ltd is looking at acquisitions especially in the European market as part of its expansion plan.

The company plans to invest close to Rs 100 crore for acquisitions, says a company release.

For the period January - June 2005, Sami Labs recorded a turnover of Rs 326 crore.

By the end of this calendar year, Sami is projecting a turnover of Rs 600 crore and the expected turnover for the next financial year (January - December 2006) will be Rs 1,000 crore.

The company is betting big on its patented product Forslean, its brand for Coleus Forskohlii (a wild plant with medicinal qualities) extract, an accepted supplement for weight management in the international market.

In this endeavour, Sami Labs has directly associated with more than 5,000 farmers in the district of Salem and other adjoining districts to cultivate Coleus Forskohlii.

Currently Sami is cultivating Coleus in 15,000 acres of land and plans to expand the cultivation to 30,000 acres of land covering regions in Tamil Nadu, Karnataka, Andhra Pradesh, Kerala, Punjab, Maharashtra and Chattisgarh.

The investment for cultivation will be to the tune of Rs 50-60 crore.

The company has evolved a model of cultivation which involves the participation of farmers, research labs and the international market. Sami has entered a buy-back agreement with the farmers.

As a result the farmers are assured of a steady price for their harvest.

They are supplied with the planting material, loan and insurance protection for their crop