Incidentally, Orivit 2000 Inc has a marketing alliance with Pharmavit to sell and promote the latter's Plusssz effervescent drink tablets in the domestic market. Orivit 2000, a division of the Rs 15 crore Orion Exports Inc, launched Plusssz here on Friday.

Orion plans to spin off Orivit 2000 as a separate company in which Pharmavit is ready to put up half-a-million US dollars for a stake. The details are being worked out.

Bristol-Myres Squibb director Bela Timar said the company was planning to discuss the issue with its marketing partner. ``The funds will be utilised for promoting our products in India,'' he added.

As per the marketing agreement, both the companies have to equally bear the expenditure on promotion. ``So we have toinvest substantial funds in the country after obtaining the FIPB approval. Since Pharmavit does not have a presence in India, we think investing in Orivit 2000 will help to boost our sales,'' he added.

Timar told The Financial Express that the company's plans were too premature and both the companies would work out an amicable solution next week when Orivit managing director CP Udayakumar visits Pharmavit officials in Hungary.

When contacted, Udayakumar categorically said the company had not taken a decision on offering an equity stake to Pharmavit. ``But we are discussing different options in order to capture the market in association with the foreign firm,'' he added. Orion, it is learnt, is not too keen on pumping in the funds to match Pharmavit's investments since it is a new product that has still to face the market test.

Timar said the setting up of a manufacturing facility in India would help the company reduce heavy import duty (currently the company pays about 64 per cent duty under OGLto import Plusssz) and the transportation cost. But a decision to this effect will be taken only after establishing its presence in the domestic market.

The company has set a sales target of half-a-million dollars from Plusssz over the next six months and during the next fiscal the sales projection is for $3 million. However, Orivit is yet to chalk out its promotion plans in the country.

In the first phase, Plusssz will be launched in over 70,000 pharmacies and departmental and chain stores in the states of Karnataka, Andhra Pradesh, Tamil Nadu, Kerala and Maharashtra. To start with Plusssz Vitamin C, Multivitamin and Junior sub-brands are in the offing. Orivit is also planning to unveil Calcium and Iron+Vitamin C varieties soon.

Pharmavit has established its market presence in countries like Hungary, Poland, Czek Republic, Slovakia, Romania and Vietnam. Established in 1988, Pharmavit introduced Plusssz tablets in 1989 as a unique form of vitamins and mineral consumption.

The company officials claimedthat in 1998 the sales of Plusssz were close to $40 million in each country. The new formula of Plusssz Multivitamin, Vitamin-C and Junior with new ingredients and new vitamins but without sugar was launched in January 1999.