According to Mr Dieter Kambeck, chairman and managing director, Bayer Group of companies in India, the company is planning to make a foray in the health sector in India, but is adopting a wait-and-watch policy till a clear scenario on the patent bill emerges.

Mr Kambeck said the company may go in for acquisitions of Indian pharmaceutical companies and was working in this direction. He added that the company is cash-rich and hence would not restrict itself in acquiring a company, if it turns out to be a good deal.

"We would want to go for acquisitions rather than invest in infrastructure and also go for joint ventures wherever possible," said Mr Kambeck. Bayer would focus on products close to consumers, and hence concentrate on generic business in the health sector.

Mr Kambeck added that Bayer wants to concentrate on four segments - healthcare, agro-chemicals, leather chemicals and flavours & fragrances. He said the company could do much better in the healthcare sector and was working on a business plan. But till the patent bill was cleared, the company would have to wait, he added. He hoped that by 2005, the decks would be cleared and the company could make its presence in the market.

Bayer has entered into a strategic alliance with Supertex Sarex to market textile chemicals in the Indian market. Bayer is eyeing the Rs 720 crore textile chemical market in India, but is yet to set any sales target.

The products include chemicals used in the pre-treatment, dyeing auxiliaries, printing and finishing of textiles. All the products are eco-friendly. Mr Kambeck said the technical expertise by Supertex Sarex and their deep penetration in the Indian market would work to Bayer's advantage.

"We cannot depend on our normal sales and hence have tied up with Supertex Sarex as their marketing is eight to ten times stronger," added Mr Kambeck.

Bayer would, however, continue production at its own plant at Thane near Mumbai, informed Mr Kambeck.

Ashok M Saraf, executive director, Sarex Overseas added that the alliance would help the company earn valuable foreign exchange. He said the alliance would provide an opportunity to the company to serve the textile industry better and in turn, enhance the Indian fabric value.

Mr Saraf added that Supertex Sarex would also formulate Bayer products in India at its own plant at Tarapur by importing the concentrates and then formulating them with knowhow from Bayer. Supertex Sarex would also be making certain products on toll manufacturing bases for Bayer, Germany, which will earn precious foreign exchange, he added.