The Rs 50-crore Bayir Chemicals, an herbal and nutraceutical major in Karnataka, will invest Rs 10 crore to expand its manufacturing facilities in the state.

The company, which recently bought over the assets of UB Pharmaceutical plant in Tumkur for Rs 4 crore, is now investing Rs 6 crore to upgrade this facility. Plans are underway to convert the plant to a biotech speciality chemical production unit of WHO GMP and US FDA standards with a dedicated R&D centre to convert the facility from a bulk drug unit to a full-fledged plant-based formulation facility.

The revamped unit, under the banner 'Beloorbayir Biotech', a subsidiary of the parent company, is expected to be commissioned by 2005-end and will develop plant-based drugs for metabolic disorders and antioxidants for cancer therapy. Around 25 production and research staff are expected to be hired in the first phase of operations.

The company, which already has a research team of 15, operating from its R&D Centre at Peenya, expects to double the team. The company has been spending 10 to 15 per cent of its turnover for research activities. The manpower augmentation is required as the company's focus is going to be in the areas of molecular research, isolation of active pharmaceutical ingredients, fermentation and cell culture capabilities, BG Bairy, director Bayir Chemicals told Pharmabiz.com.

The two-and-half-decade old Bayir Chemicals has two manufacturing GMP-compliant units located at Peenya and Bidadi in the outskirts of Bangalore which have been set up at a cost of Rs 30 crore. These plants manufacture drugs for disease segments like osteoarthritis, diabetics, neurology, memory improvement, energy boosters and anti oxidants. It manufactures herbal extracts like bacopa monniera, Glucosamine, embelica officinale and rauwolfia serpentina. The company's highest revenue earner is Glucosamine both in the domestic and international markets. Its clientele in the national arena include Biocon, Ranbaxy and Cipla.

With a major presence in the global market, its exports contribute 60 per cent of the revenues. Through 'Beloorbayir Biotech', the company hopes to consolidate its position in the markets of US, Europe, and Malaysia.

The business of herbal extracts is marked by stiff competition in both domestic and global markets. Bayir has been able to maintain an edge only because of its strategy to concentrate on single active compounds which is the biggest advantage, informed Bairy.

Although the company has land for growing herbs like ginger and turmeric in Kanakapura in the outskirts of Bangalore, it has adopted the model of 'help grow and procure' strategy. Hence, it sources a major quantity from contract growers located in Uttar Pradesh, Himachal Pradesh, Tamil Nadu and other districts of Karnataka.