Ayurnet Healthcare plans foreign expansion

Ahmedabad-based Ayurnet Healthcare, part of the Rs 700-crore Jayant Oil Group, plans to foray into foreign soil by April 2007.

Shailen Bhargav, chief executive officer, Ayurnet Healthcare, said, "We plan to enter West Asia, African and Commonwealth of Independent States (CIS) countries by April 2007."

In the first phase, the company would consolidate its position in the semi-regulated market and then move to the highly regulated market in the European and the north American regions.

"Entering the CIS, West Asia and African nations is a natural choice due to its easy entry compared with the highly regulated markets in the western countries," Bhargav said.

During the second phase, the company will first enter the US and UK. It has already applied for product registration in both the countries.

"It will take another 12 to 18 months to receive the registration in the US and UK," he said. The company is likely to foray into these markets by mid-2008.

Ayurnet Healthcare is the Jayant Oil Group's recent venture in the business of manufacturing standard ayurvedic medicines. The company launched its operations in May 2006.

Ayurnet's current range of products caters to segments like general health, long-term ailments like diabetes, hyperlipidemia, asthma, chronic skin ailments and women and child-related diseases.

The company currently has six products in its portfolio and 15 new products are in the pipeline. It will soon come out with a herbal medical product, a liver tonic, a kit for mother and new borns, etc.

At present, the company is expanding its presence in the country. It has launched its set of products in Gujarat and Madhya Pradesh. The second phase expansion would see Ayurnet entering Rajasthan, Uttar Pradesh, Bihar and West Bengal.

The installed production capacity of Ayurnet Healthcare in a single shift operation for 300 working days (1 shift is equal to 8 hours) is 6.20 crore tablets, 3.75 crore capsules, 28.8 lakh bottles of liquid, 30,000 kg granules product and 60 lakh ointment tubes.

The company expects a turnover of Rs 6 crore in its first year of operation in the financial year 2006-07 and is eyeing a target of Rs 30 crore in FY 2007-08.