Charak Pharma in joint venture with IL&FS Investmart

Ayurvedic drug firm Charak Pharma has roped in IL&FS Investmart to look for joint venture partners in the US and European markets to sell its entire range of cosmetic, nutritional and dietary supplements.

"The demand for herbal products in the US and European markets has been increasing. We have already established our presence in the domestic market. Currently, we are expanding our business to regulated markets and IL&FS has been asked to find out a join venture partners for the same," Pulin Shroff, managing director of Charak Pharma, said.

Recently, Charak had inked an alliance with multinational pharma major Novartis' Indian subsidiary for the promotion of three animal healthcare products from the Charak stable.

Shroff said, "We are looking for a similar kind of joint venture in the overseas market where we will offer our entire range of herbal product and the foraying firm can market the products in the overseas market."

Currently, exports contribute around 10 per cent of the total turnover of Charak Pharma. The Rs 100-crore company has a wide range of branded compound formulations out of which 42 are actively marketed in India and a few more in other countries.

Shroff added that the company plans to increase the area under contract farming to cultivate medicinal herbs from 200 acres to 1,000 acres over the next four years.

The company is currently cultivating five herbs through contract farming and has listed 16 herbs for cultivation. ''The company stands to benefit to the extent of 15 per cent by opting for contract farming than buying these herbs from traders," Shroff said.contract farming currently satisfies five to six per cent of the company's raw material requirement. With the increased area under contract farming, it will fulfil 20 per cent of the raw material requirement, he added.

"We are currently entering into contract farming at Pune, Roha and Karjat in Maharashtra. However, with the upgradation of our extraction plant at Panipat in Haryana, we would look at contract farming for medicinal herbs in and around the Northern states as well," he added.