Madhur Pharma & Research Laboratories (P) Ltd, a 19-year-old herbal drug manufacturer, is in advanced stages of discussions with both Indian and international companies to seek contract manufacturing orders for herbal drugs production. This will help the company to accelerate its overall growth prospects. The company hopes to cash in on its strengths as a quality manufacturer adhering to delivery timelines besides the stringent audits to certify its plant and practices.
The company, which is a recognized herbal drug contract manufacturer, has maintained stringent quality standards. It has engaged lab test majors like Bangalore Test House, Shiva Analytical in Hoskote in the outskirts of Bangalore and Sargam Metals, Chennai which is a leading NABL accredited testing centre to ascertain the heavy metal content in the drugs of the products manufactured for its customers.
Orders from within the country can be expected because the withdrawal of excise relief to the contract manufacturers in the excise free zones at Baddi, Uttaranchal and Jammu & Kashmir has seen many of the large drug herbal companies to identify quality conscious small companies to outsource production. This is where we fit the bill, Dr Chitra Phadnis, CEO, Madhur Pharma & Research Laboratories told Pharmabiz.
The benefit of contract manufacture is the volumes game and advantage in cost conversion which benefits small units. The large volume and high value drugs are the revenue generators, she added.
The Schedule T compliant unit which is located in the Peenya Industrial Area in Bangalore had sought a fund assistance of Rs 25 lakh to upgrade its equipment besides construct a larger premise to be able to handle the contract manufacture orders. Now it has sent in a proposal to SIDBI for funding to the tune of Rs 3.5 lakh to purchase additional instrumentation for its laboratory.
Along with contract manufacture, Madhur Pharma has developed its own line extension of 25 herbal formulations for cold, cough, digestive disorders, inflammatory conditions, gynaecology drugs and memory boosters. These are sold under 'Madhur' brand. The 4 percent levy of excise duty on herbal drugs has come in as a big relief which has witnessed increased earnings. Now it is also looking at increasing its market presence not only in India but abroad. It has been exporting to Europe, Holland, Russia and Israel. Around 30 percent of its revenues come from the international market, said Dr. Phadnis.
So far much of the business for contract manufacture has come in from referrals from existing customers. In 2008, the global contract manufacture is estimated at US $80 billion. Despite the economic downturn, the herbal drug sector seems to be insulated from the crisis as contract manufacture orders have continued to pour in, she stated.