Bayir Group of Companies has drawn up plans to invest Rs 60 crore for plant expansion and modernization which is expected to further help to expand its reach in the global markets.

The Group which has four companies: Bayir Chemicals, Bayir Extracts, Beloorbayir Biotech and Sneha Natura has chalked its entire debt raising route through banks.

With the expertise to develop both modern and herbal drugs, Bayir is known for its Glucosamine bulk drug and formulation products. Bayir Chemicals has been the third company globally to have filed a Drug Master File for this product after Bioiberica in Spain and Rota Pharma in Italy. We are recognized as manufacturers of bulk drug and formulation in bulk supplies for many global companies. Now with the economies-of-scale strategy adopted by the western world in the wake of the weak dollar and falling Euro, several enquires to augment production have led us to look at expansion and seek regulatory clearances from UK MHRA and TGA, Australia for which funds are required, BG Bairy, managing director Bairy Group of Companies told Pharmabiz.

"With 90 per cent of the products exported to international markets, we needed to move to the next phase of growth where contract research and manufacturing opportunities can also be catered too. India's competency and costs have been driving companies with expertise to generate revenues from outsourcing", he added.

Currently the Group has 6 plants in five locations of Peenya and JP Nagar in Bangalore, Tumkur off Bangalore and Bhatkal in Uttara Kannada district of Karnataka. The upgrading of plants will also increase its workforce to 500 from the current 400 people.

The company which has three products in the Glucosamine category, one Chondroitin sulfate, four herbal drugs including coleus and 13 formulations covering anti arthritic and anti diabetic drugs among other synthetic and natural biotech products. Fastest growing are Glucosamine, anti diabetic and coleus which thrive in international markets including US, South East Asia and Lebanon, besides orders from the large pharma-biotech majors in India.

The company ending fiscal 2009-10 clocked earnings to the tune of Rs 60 crore and is confident of generating Rs 80 crore in 2010-11. The market is vast and driven by lifestyle disorders like diabetes and arthritis. This is where opportunities for companies like Bayir exist. Advanced technology will help us to adhere to highest quality and delivery time lines. Going by the potential prospects and with its expertise in Glucosamine, Bayir Group will look to raise money through an IPO at least by 2014, he said.

"There are opportunities to invest anywhere between Rs 5 crore to Rs 10 crore in the six plants, but we are looking to consolidate our operations at one centre at Dobbaspet in Tumkur district in about a couple of years for which land is acquired. It intends to convert the existing facilities in Bangalore to research centres", he said..

A visible trend in the global market is the move by pharma chemical bulk drug and formulation sector looking at India for expertise at affordable costs. In fact, it would mean a lot more of business sense to offload projects to India, said Bairy.