Bacfo's Managing Director Arun Chauhan told The Financial Express that the company was in talks with 4-5 companies in the US for acquisition. Bacfo is prepared to invest upto $5 million in the acquisition and then put in more money to upgrade and expand its operations.

Mr Chauhan said the acquisition was likely to be completed within eight months and production is targeted to start around March-April 2002. The US company would market products in the north-American, Latin American and south American countries.

Bacfo, a part of AKC group, launched its ayurvedic medicines in Delhi and Uttar Pradesh markets, besides exports, in June last year. The medicines are being currently marketed through the ethical marketing route, that is, through doctors.

Bacfo plans to launch one of its medicine, Respicare, in the over-the-counter (OTC) market. Mr Chauhan said other medicines would also be introduced in the OTC market gradually.

The company has shortlisted over 100 products in herbal and ayurvedic market. The packaging of the medicines is similar to allopathic medicines to give them an up-market look.

Bacfo has also set-up a subsidiary in London, Bacfo Ltd, to market products in the Europe, Mr Chauhan said.

The company is currently exporting about 50 per cent of its production to Zimbabwe, Lebanon, Sri Lanka and a few other countries. Of the 100 products shortlisted, Bacfo has so far introduced eight products and plans to launch another five, in the first quarter of the next fiscal beginning April. The medicines currently available are for hypertension, diabetes, liver disorders, acidity, indigestion, constipation and impotency. Products lined up for launch in the April-June quarter, include medicines for weight management, arthritis, hair-loss, piles and herbal iron. Other products slated for launch in 2001-02 are for cholesterol reduction, weight gain, blood-purifier, viral fever, Hepatitis-B, leucorrhoea and immune modulator.According to Mr Chauhan, the company plans to invest Rs 10 crore in research and development (R&D) during the next fiscal. The company is setting-up a R&D centre in Noida.Bacfo holds licences for another 85 generic products, but does not plan to launch them in the market in the near future.Mr Chauhan said exports will be one of the main focus areas. "I have lived in Germany for 20 years and noticed that there is tremendous interest in herbal and ayurvedic medicines in developed countries, as people there are concerned over after-effects of allopathic medicines," he said.Bacfo proposes to venture into herb cultivation. Mr Chauhan said the company plans to go in for herb cultivation in Darjeeling, for those herbs which grow on hills and in Manesar in Haryana for herbs grown in plains.