Transnational health science company Sami Labs, which has key operational bases in the US and India, is projecting gross revenues of Rs 600 crore in the current fiscal, and looking for an acquisition in the European market as part of its expansion plan.
Sami Labs Chairman Dr Muhammed Majeed said the acquisition was meant to accelerate expansion plans of the company, which is targeting to hit a turnover of Rs 1,000 crore in the calendar year 2006. The company is planning to invest approximately Rs 100 crore into its European acquisition, and will delve into its reserves to fund the acquisition. “We have considerable reserves, and in case more funds are required, the company has good credit lines with reputed banks,” Dr Majeed said.
The details for the acquisition are only being finalized, but Dr Majeed said the prospective company would likely be involved in nutraceuticals or fine chemicals. Sami Labs, which is a leading producer of nutraceuticals, cosmeceuticals, standardized herbal extracts, fine chemicals, speciality chemicals and probiotics, is currently focusing on its patented product ForLean®, an extract of Coleus Forskohlii, which is an accepted supplement for weight management in the global market.
The company cultivates coleus in 15,000 acres of land, and during the current fiscal its herbal cultivation is being expanded to 30,000 acres covering regions in Tamil Nadu, Karnataka, Andhra Pradesh, Kerala, Punjab , Maharashtra and Chattisgarh with an estimated investment of Rs 60 crore.
Sami Labs, which has 14 US and five international patents, will be launching its cosmeceutical range of products this year, and will adopt multi-level marketing for product marketing in the domestic market.