Kairali Ayurvedic heads abroad on BJP promise

With the Bharatiya Janata Party promising to give a boost to traditional medicine, Kairali Ayurvedic, a leading group in the segment, has plans to expand at home and abroad.

The group, which has a presence in India and eight other countries, including Poland and the United Arab Emirates, is eyeing markets such as the US and Egypt. Kairali, which develops ayurvedic drugs and operates spas and treatment centres, might enter specialised retailing of Indian medicines soon.

"We plan to enter the US and Egypt by the end of this year. While America does not recognise ayurvedic medicines, the group is planning to enter the market by launching herbal supplements," Kairali Director Abhilash K R told Business Standard, adding his great grandfather founded the company with an idea to provide complete ayurveda solutions under one roof.

Kairali intends to tie up with an American entity to float a joint venture company in the US by the end of this year. "We are in negotiations and a deal is likely to be signed soon," Abhilash said. The venture will open wellness retreats by acquiring assets and operate day-care treatment centres as franchises. Kairali has around 35 treatment centres across the world.

In Egypt, the company will opt for a pure franchise model.

According to Abhilash, the group plans to double its treatment centres by the end of next year by opening one every month.

Kairali manufactures 150 products that are used in its centres and retreats and including chyavanprash, herbal tea and prescription drugs. The company holds patents for 13 of these products.

Wellness retreats and the product business are the company's fastest growing segments at a rate of 30 per cent a year. The segments contribute around 33 per cent each to the company's total business mix.

While ayurveda is a traditional Indian system of medicine, it has been recognised only recently. India's spa industry is growing at a healthy 20 per cent and is expected to reach a value of Rs 87,500 crore by 2015.

According to industry estimates, the Indian herbal product industry is also likely to double from the current Rs 7,500 crore to Rs 15,000 crore by 2015.

However, the industry maintains that it requires government and regulatory support to prosper. "Sri Lanka is claiming ayurveda as its own. If our government does not support us, we will lose this opportunity and wealth that we hold for years," said Abhilash. He added the government needed to create a single window clearance system and develop acceptability for ayurveda similar to conventional drugs. Besides, substantial backing of the government is needed as ayurveda treatments were part of medical tourism, he said.

The Bharatiya Janata Party manifesto for the ongoing Lok Sabha elections stressed the need for improvements in Indian systems of medicine, including ayurveda.