The Bangalore-based herbal healthcare firm Himalaya Drug Company said it would set up a research and development and manufacturing base at Bidadi near Bangalore at a cost of Rs 165 crore.

The work on the facility in 200 acres will commence in August and be completed by 2005, President and Chief Executive Officer of the company Ravi Prasad said.

He also announced the company's foray into the honey market with the launch of Himalaya Forest Honey.

Prasad said the new center would have certifications from the pharmaceutical and regulatory agencies of the US, Europe, and Australia.

Currently, the company employs about 80 scientists at its 90,000 sq ft research and development laboratory in Bangalore. The company operates in four key areas pharmaceuticals, personal care, consumer health and animal health. The company has recently opened its third retail outlet in Sri Lanka.

With the launch of Himalaya Forest Honey, the company is targeting a 10 percent share of the Rs 45-crore honey market. Zandu, Dabur and Khadi Gramodyog are among the major players in the market besides the unorganised sector.

Prasad said the direct to consumer healthcare market is growing faster compared to the therapeutic products. "The direct to consumer market is growing at 28 per cent compared to the therapeutic products' 12 per cent," he said.