The Rs.1.2 crore Madhur Pharma & Research Laboratories P Ltd., an ayurveda drug producer and contract manufacturer is gearing up for consolidating its presence in the global market. Since 2000, the company has been in the African markets and Europe regions where its range of ayurveda formulations developed in-house for respiratory, digestive and anti inflammation is promoted via the ethical route.

For Madhur Pharma, 30 per cent of its earnings are from exports and now plans have been chalked out to augment its sales further to 50 percent over a period of time beginning this financial year.

"We are keen to address more countries going by the acceptance of our products. The mandatory requirements of reports on the content of heavy metals in drugs issued recently by the government of India now comes as a big relief as we have been adhering to such practises all along as our products are acknowledged in the global markets where customers are tough and unrelenting, stated Dr. Chitra Phadnis, chief executive, Madhur Pharma & Research Laboratories.

In fact the main reason to focus on exports is the prevailing value added tax (VAT) which has affected no input tax benefit on CST. This along with the movement of large ayurveda companies to excise free zones of Baddi, Uttaranchal and Jammu & Kashmir to capitalise on the tax benefits has affected business, she added.

The 16 year-old company which was into generics (tablets, capsules, liquids, ointment) and herbal drugs was an institutional supplier. In 2000, it invested Rs. 25 lakh to enter contract manufacture of ayurveda capsules and ointment. The Schedule T facility bagged orders from leading drug majors until the excise duty and VAT caused a considerable drop in business. "When some of our major customers began moving out to the Union government's excise free zones, we felt contract manufacture was no longer lucrative. The only hope is to survive serving global customers where quality standards and product efficacy are recognised, informed Dr Chitra Phadnis.

For the future, Madhur is going all out for global orders with referrals from its existing customers as it has proved its quality and delivery times lines. Not only its range of products for the international markets go through stringent checks for which it has hired the services of Shiva Analytical in Hoskote in the outskirts of Bangalore for a thorough scrutiny of the contents.

The company also maintains a small market in Karnataka with its range of products manufactured in-house.