Amar Remedies investing Rs 30 crore in new manufacturing plants

New Delhi, June 27 (UNI) Ayurvedic products major Amar Remedies Ltd (ARL) will be investing about Rs 30 crore on setting up of its two manufacturing facilities at Surat in Gujarat and at Dehra Dun in Uttaranchal before the end of this year.

ARL's existing Daman manufacturing facility is a sophsticated plant with modern machinery used to manufacture FMCG products and Ayurvedic medicines. It is into manufacturing various types of Toothpastes along with Pain Balm and Toothpowder.

The company is investing over Rs 9 crore for the revival of the Surat facility by next month and setting up a new manufacturing unit in Uttaranchal at a cost of over Rs 18 crore that is expected to be operational by November this year.

The first manufacturing facility was constructed at Surat to develop, produce and market Ayurvedic products, which was later closed.

Formally launching Amar brand 100 per cent Ayurvedic and Vegetarian toothpaste in North India here today, ARL Managing Director Sagar Shah said that production at Surat plant will cater to the health care segment while Dehra Dun plant will produce oral, skin and hair care products.

In addition to their oral care products, ARL also launched Amar Balm, which is 100 per Aurvedic balm for headaches, cold and cough and Amar Get Up, an ointment for backaches, joint pains and muscular pains, here.

ARL manufactures more than 25 brands and variants of toothpaste for local as well as the export markets. It also makes regular cosmetic toothpastes besides herbal products.

Amar brand products have good presence in African countries like Nigeria, Ghana, Sudan and Tanzania besides in countries like Dubai and Panama.

The Mumbai-based company has its strong markets in Gujarat and Maharashtra and now entering the Northern region of the country.

In the Rs 2700 crore toothpaste market in India, Amar Remedies holds 2 per cent market share. The Ayurvedic/Herbal toothpaste market constitutes 12 per cent of the entire toothpaste market in the country. While the overall toothpaste market is growing at a 6 per cent rate annually, the Ayurvedic/Herbal toothpaste market is increased by close to 10 per cent annually.

The company is expecting a turnover of Rs 140 crore inclusive of export revenue between Rs 55 to Rs 60 crore with net profit upto Rs 20 crore during 2005-06 as it has a financial year from July to June.

With both the plants under construction becoming operational, ARL is envisaging a 35 to 40 per cent growth in its annual turnover.

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