MUMBAI, Nov 16: The Vadodara-based Alembic Chemical Works Co Ltd is in talks with Mexican multinational Bioquimex for a marketing alliance in herbal veterinary products. Bioquimex figures among the world's leading players in the natural pigments market (used in poultry feed) with a market share of about 40 per cent.

Industry sources said the alliance with the $2-billion Mexican giant is subject to Alembic getting registration clearances for its herbal products expected to be covered under the arrangement.

Alembic is tipped to commence registration formalities for at least three herbal products like Rumigest, for indigestion; Ointment ASD, for skin ailments; and Growmilk. Registration formalities for herbal products, industry experts say, are rather tedious given the lack of information on this form of medicine worldwide.

It is, however, not clear whether the prospective partners will consider extending the alliance to other areas as well subsequently.

If the alliance goes through, it will probably be Alembic's second major marketing tieup for veterinary products. The company already has a strategic alliance with Hindustan Ciba Geigy and Ciba Bangladesh, now Novartis, for marketing its veterinary products in Bangladesh. Under the terms of the alliance, Alembic's antibiotics and speciality products are exported to Bangladesh and marketed under the company's brand name by Ciba.

The planned alliance with Bioquimex comes at a time when Alembic and Merial, a 50:50 joint venture of the Rhone-Poulenc group and Merck & Co Inc, have held preliminary discussions for a strategic tieup. Merial is the world's largest animal health and poultry-genetics company.

Alembic's herbal veterinary products are to be manufactured by Ban Labs at its unit at Rajkot. The veterinary unit, which plans to set up an exclusive marketing and distribution network in the country, expects to record sales of Rs 10 crore within the first four years.

The Rs 292-crore Alembic Chemical Works is the sixth largest player in the domestic animal health market and had officially launched the herbals veterinary division on June 4 this year. The veterinary unit had recorded sales of Rs 19.36 crore for the year ended December 31, 1996.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.