Forest corporation moots JVs for Ayurveda medicines

The Karnataka Forest Industries Development Corporation (KFIDC) has mooted joint ventures with private ayurvedic and herbal medicine manufacturers and is expected to finalise a proposal for a tie-up with two firms.

According to the KFIDC officials, a firm based abroad has evinced interest in the manufacture of aromatic and other medicinal products, while another private firm from India has shown a desire for a joint venture for manufacturing ayurvedic medicines.

“Negotiations are presently going on and we will seek government approval for joint ventures soon after negotiations. Such joint efforts could increase KFIDC’s turnover by Rs 6 crore. Discussions are on with 3-4 other companies,” KFIDC chairman Shankara Gouda Patil told Business Standard.

A small-scale unit for manufacture of ayurvedic medicines from herbal plant ‘Amrutha Balli’ (Indian tinospora) under a joint venture may take shape in about three months at Belgaum, he said here.

Of the two saw mills at Dandeli and Shimoga which were shutdown sometime ago for want of raw material and labour issues, the Shimoga mill was being revived. Shimoga had a depot of the KFIDC.

Lamenting the lack of awareness among forest staff on the abundant forest wealth, particularly those relating to herbs and medicines, the chairman said the ‘Amrutha Balli’ was being allowed to be cut along with its roots in Belgaum and a few other places and sold at Rs 10 a kg, while the very same was being sold by German companies for as high as Rs 1.5 crore as medicinal powder. The KFIDC, therefore, was planning commercial exploitation of these herbs and plants, which fetch a high market value abroad.

The KFIDC’s turnover presently was Rs 35 crore and it made a profit of Rs 2 crore last year, he said adding that only 15 per cent of the potential of the organisation, which has 352 employees, was being utilised. “If the remaining 85 per cent was also used, we will reach greater heights with bigger margins.”

The Mysore unit which was established in 1973 covering the Mysore forest range of Mandya, Mysore and Hunsur and, the Chamarajanagar forest range covering Kollegal and Chamarajanagar had earned a profit of Rs 1.62 crore during 2008-09 and till July-end of the present year Rs 7.52,849. Logging was in progress across 15 plantations presently.

It had done logging on 80 plantations last year. The production accounted for timber 464.265 square metres (target 600.000 square metres), poles 164,468, and fuel 20,168 tonnes (12,000 tonnes), regional manager Rajendra said.

Set up in 1985, the KFIDC had sought Rs 2 crore from the state government to expand production, though it is a self-financing organisation. The Mysore unit had eight fuel marketing depots selling fuel per tonne at Rs 2,000 against the market rate of Rs 2,500.

It was also manufacturing furniture, the chairman added.