Business Standard
Anil Urs, Bangalore
Friday, April 14, 2006

Sami Labs plans plant in US

Sami Labs, the Bangalore based nutraceuticals company (group turnover Rs 480 crore), is building a manufacturing plant of global scale in the United States. The company all these years hade small plant in Utah where it manufacturing in a limited way to cater to the US cosmetic industry.

"With the new plant, we are moving up the value chain from an ingredient supplier to for Muhammed Majeed, managing director, Sami Labs told Business standard.

“We are investing close to $4 million on the new plant to build 15,000 square feet through our internal accruals. When completed, the plant can manufacture and package 4,000 tonnes of granules per month, 300 million tablets and 300 million capsules,” he added.

The new FDA approved facility is to get basic raw materials from India as natural extracts which will then be converted according to the need of cosmetics industry.

“Through this new  plant, Sami Labs plant to cater to the US and European markets,” Majeed said.

The company which already has an international footprint is eyeing expansion in South America with a manufacturing base in British Guyana and a marketing presence in Brazil.

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.

Presently, Sami Labs has for manufacturing facilities in India and subsidiaries in the US, Japan, South Africa and Dubai.