Headlines: Sami Labs may set up production unit in Andhra
Source:Business Standard

Bangalore-based Sami Labs Limited, a Rs 250-crore transnational health science company, is looking at setting up a manufacturing plant in Andhra Pradesh within the next six months.

Sami Labs is in serious talks with the Andhra Pradesh government in this regard and has been scouting for land in the Visakhapatnam SEZ and other places around Hyderabad.

Speaking to Business Standard, Muhammed Majeed, managing director of Sami Labs Limited, said, “We are looking at setting up a nutraceutical manufacturing plant in Andhra Pradesh within the next six months.”

We have earmarked a budget of close to Rs 12 crore for this purpose and are looking at employing around 100 people for the plant, he added.

Sami, at present, has four manufacturing plants in Karnataka and this will be its first venture in Andhra Pradesh.

The company is also entering into the multi-level marketing business with its branded nutraceutical and cosmeceutical products.

“By June this year we are also looking at marketing our nutraceutical and cosmeceutical products through the multi-level method,” Majeed said.

“We are looking at launching around 40 products ranging from moisturising complex to fairness cream which will be sold under the brand name 'Johara Cosmetics',” he said.

“These products will have herbal actives like coriander extract, wheat germ oil, tamarind extract and coconut water and will be marketed in India,” he added.

Sami, through its subsidiary Sabinsa has its presence in the US, Japan, Australia and South Africa. “We are now planning to set up an office in Brazil by this year-end,” Majeed said. “We are targeting a global turnover of Rs 450 crore by December 2005,” he added.

According to Majeed, Sami is the only company in India that does not test its products on animals. “We use alternative toxicity methods like InVitro non-animal testing that is done on cell lines and eggs. The equipment for this purpose is sourced from California-based InVitro International,” Majeed said.

“We have also received an approval from Bhabha Atomic Research Centre for radiolabelled studies that will help us in testing the efficacy of our ingredients and products without the use of animals,” he added.