The Bangalore-based Himalaya Herbal Healthcare will enter into a joint venture with a Mexican manufacturing company in the near future. The agreement is for manufacturing Himalaya's pharmaceutical range of herbal products and could be extended to the company's other products.

"We are close to finalizing the deal to provide the technology for the manufacture of herbal medicines in South America and we will also look at co-marketing of the products," says Ravi Prasad, President and CEO of Himalaya.

The facility will cater to the Mexican and Brazilian markets initially and subsequently to the entire South America market. If the deal goes through, this will be the first unit to manufacture Himalaya's products in North America and the third such unit outside the country. Himalaya has recently set up similar units to manufacture and market herbal and healthcare products in Egypt and Syria.

According to the agreement, Himalaya will provide the know-how and expertise to set up the plant, to commission it and will also supply raw material for the manufacture of the herbal products. The company however, is not planning any financial investment in the project.

The Rs 300-crore, closely held herbal healthcare company is looking for partners in other countries also for such on-shore projects. Himalaya currently has a presence in 56 countries. Most of its products are manufactured in the country and exported to its different markets.

Himalaya has started working on a new research and manufacturing facility which will begin operations in '05. "The new facility will comply with international guidelines," says Mr. Prasad.

In addition, the company is also working on a retail strategy. It has set up a chain of exclusive outlets and is also working on a 'shop in shop' concept. According to Mr. Prasad, the company plans to expand its presence in the retail sector both in the country and overseas.