Bangalore: Bal Pharma Limited, a Bangalore-based pharma major, has received Certificate of Suitability issued by the European Directorate for the Quality of Medicines (EDQM) for their product, Gliclazide, an anti-diabetic bulk drug.

Announcing this on July 16, the company's managing director Shailesh Siroya, said the certificate has thrown up a huge opportunity for Bal Pharma to foray into the European markets in a big way.

Demand for such a product in India is two tonne per month and in Europe six to eight tonnes, he said.

"Bal Pharma is the only company manufacturing 'Gliclazide' in India. Worldwide also, there are very few players. We see a huge potential," Siroya told reporters.

The company, he said, has made rapid strides and the gross turnover has grown to Rs 45.18 crore during 2001-02 from a mere Rs 1.38 crore in 1992. As much as 25 per cent of it accounts for exports.

"We are planning to reach a sales target of Rs 100 crore by 2005. This could be achieved by vertical or lateral expansion or a combination of growth," he said.

Siroya said the company proposed to invest Rs 10 crore for increasing its capacity and other expansion plans in the next two to three years.

Siroya said the company would launch an Ayurvedic division in October mainly with an eye on exports. As many as ten products, including cholesterol lowering and anti- diabetic ones have been lined up under this division.

The company has tied up with Kerala-based Nupal Remedies, which has "good history" regarding Ayurveda medicines, to test-market a product for building up immunity levels among AIDS patients.

Many African governments have evinced interest in the product, Siroya said.

He also said, "In order to capitalise the opportunity for contract research opened up by the acceptance of GATT, a fully-owned subsidiary company has been formed to take up contract research in a big way."

Contract research is expected to contribute Rs 5 crore to the company's sales revenue in the current financial year and this figure is projected to go up to Rs 30 crore to Rs 35 crore in five years.

After 2005, there is a "good potential" for Indian pharma companies, he felt. MNCs have already started visiting plants of various pharma companies in India, exploring possibilities of outsourcing, Siroya said.

For the first quarter of the current financial year, the company had a turnover of Rs 13.62 crore and net profit of Rs 72.8 lakh, up 35 per cent and 60 per cent, respectively, compared to the same period in 2001, he said.

PTI