The arrangement will, to begin with, cover a range of herbal products slated for launch by the Piramals in October this year, even as it would encompass the company's ethical neutraceuticals as well. Key herbal products slated for launch include treatments for depression, arthritis and a cholesterol reducer.

The domestic market for the Indian System of Medicine and Homeopathy is estimated to be worth Rs 4,200 crore and ayurvedic medicines alone account for a share of over Rs 3,500 crore of this pie. The global herbal market is estimated to be worth $62 billion. The Piramals already have two joint ventures-Charak Piramal and Solumiks Piramal-for developing and marketing natural ayurvedic products. Nicholas Piramal's chief scientific officer Dr Swati Piramal said that the alliance with Banner is yet another step by the company to partner the world's best in its area of expertise. Banner Pharmacaps Inc chairman and chief executive officer James W Warren Jr was also in Mumbai to finalise the alliance details.

Bannner Pharmacaps has two facilities in India. Its Gujarat unit, with a capacity of one billion capsules per annum, has received GMP certification by the WHO, while a second plant at Bangalore has a capacity of two billion capsules per annum (this can be doubled to four billion capsules). The current arrangement will primarily revolve around the Rs 45 crore Bangalore unit, designed to meet US FDA, Australian TGA and the UK MCA standards.

President and managing director of Banner Pharmacaps India, Vikram Tannan, said that alliance involves pooling of resources and two partners will work out mutually acceptable commercial terms in due course.

"Our company is reputed for its innovation and high quality standards and also known for producing innovative delivery systems for out clients. We are now delighted to be associating with Nicholas Piramal for manufacturing their range of neutraceuticals," Tannan said.