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Sanjiv Shankaran

CHENNAI, May 8

HERBAL medicines have emerged as Arvind Remedies' fastest growing business segment after their introduction a couple of years ago. At present, the company is in the process of registering herbal medicines in Korea and Malaysia in order to examine the potential there.

The herbal medicine division logged a turnover of about Rs 20 crore in 2002-03, around one-sixth the total sales of Rs 212 crore. Mr Arvind Shah, Managing Director, Arvind Medicines, identified the herbal medicine business as the fastest growing segment of the company after its launch.

Putting the business in context, Mr Shah said the company examined areas that offered realistic growth potential, and identified herbal medicines as a pillar for the phase after 2005 when proposed amendments to patent laws will prevent Indian companies duplicating drugs discovered by others.

According to Mr Shah, the global market for herbal products is about $70 billion, and is growing annually at about 15 per cent. The size of the Indian market for herbal products is estimated to be around Rs 5,000 crore, about 25 per cent of the domestic retail pharmaceutical market in 2002. The company believes that the herbal medicine market is growing faster than the 10 per cent growth registered by the allopathic market over the last couple of years.

Among the key brands launched by the company are Pankare (to combat diabetes) and Sorexil (used for skin ulcers). According to Mr K.V. Narayan, a governing board Director, Arvind Remedies is working at establishing a scientific manufacturing standard for known herbal formulations. For instance, the company has worked at eliminating a trace of toxic elements, such as lead, that is present in all natural products as also bacterial contamination.

The herbal medicines need to be cleared by the Drug Controller prior to launch. Mr Shah said prior to the launch of the drug, the company conducts clinical trials to generate data on its effect. The results of the clinical trials are essential to Arvind Remedies because it has chosen to market the drug through physicians — a few herbal medicines are promoted directly among patients. Mr Shah explained that clinical data is a key element in convincing physicians of the efficacy of the drugs.

The company has identified chronic ailments such as hypertension as areas where it hopes to launch herbal drugs. At present, Arvind Remedies is in process of constructing a new plant along with a research unit at Kakkalur near Chennai for herbal medicines. Till the new plant is ready, the existing factory at Kakkalur will produce all its medicines.

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