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arrowHindustan Biosynth to take over Group Company
arrow_iconCompany to focus on herbal products
ARCHANA MOHAN, Ahmedabad

 

Prior to 2005 Vadodara based Hindustan Biosynth was considered one of the top five players in Gujarat  in pharmaceuticals formulation of where its focus will lie in the coming years , the company will soon take over its group  firm  Hindustan Pharmaceuticals and utilize its manufacturing facilities to produce herbal products.

Currently 75 percent of the company’s  revenues come from pharmaceuticals formulations , which has been its core business since inception. But now, the company is making a major shift towards herbal products.”Between January 2005 to 2008, we have lost a high number of clients the pharma space to companies operating in the excise-free-zone. By making an outright purchase of Hindustan Pharmaceuticals, we are  planning to pursue herbal essentials for the export markets” said KS Chhabra, Managing Director, Hindustan Biosynth.

Herbal essentials contribute around 25 percent to the company‘s revenues at present and is expected to go up significantly after the buyout, which is likely to make place in the next fiscal. Hindustan Pharmaceuticals’s  manufacturing is located  near Vadodara

Following the take-over the manufacturing capacity for herbal products  would go up by nearly 75 percent. While Hindustan Pharmaceuticals’ worth  has not been disclosed, the management  is looking at funding the take-over  through commercial banks. It is also keeping the  private equity option open and is in talks with a couple of private equity players.

The company is looking at a growth of 25-30 percent in th herbal essentials business this year while working on becoming the number two player in herbal essentials in India in next few years.

The manufacturing focus in the herbal essentials segment will lie on lifestyle diseases like diabetes and cardiovascular problems.

Products like gel and oil for arthritis, cholesterol , digestion and liver capsules are already available in the Commonwealth of Independent  States (CIS) in a small way and will be exported to six countries.

“Herbal products  catching on in a big way in the CIS countries. It is increasingly  being used for both preventive therapies and to treat sickness in abroad.