Monday May 9, 2005 - STEVIAN Biotechnology Corp Bhd, one of the firstbiotechnology companies to operate in the country, expects its biochemicalproducts and food ingredients to generate RM6bil in revenue over the next10 years.

"Our 10-year masterplan is to launch seven separate facilities withpartners or subsidiary companies that will produce and distribute ourproducts. A capital investment of RM800mil is required for all sevenfacilities,'' managing director Magomet Malsagov said in an interview.

Stevian, a Malaysian-European joint venture company, specialises inadvance biocatalysis, known as applied microbiology, and owns the onlypoly functional biotechnology plant in Sout-East Asia.

In operation for just over six months, this RM60mil facility, in LabuTechnology Park, Negri Sembilan, produces eight products - one foodingredient and seven biochemical products.

Malsagov said Stevian possesses the intellectual property (IP) as well asthe technology to produce 62 products in the next three to four years.

"By end of this year, we will be producing at least three to fouradditional bio chemical products," he said

Magomet Malsagov

The IP rights is from its parent company, Britain-based Mercury SparkLimited.

In April, the companies sealed an agreement valued at RM250mil for thetransfer of IP rights, that includes patents, collection of microorganism, technology and engineering know-how.

On the master plan, Malsagov said: "Once products have been developed andtested, we will look either for partners with existing facilities orspin-off subsidiary companies to take over production and distribution.This will allow us to stay with our core competency which is to researchand develop new biotechnology products."

He added Stevian is in the process of procuring a company in China, whichhas an existing facility and plantation to produce its main product, anenzymatically enhanced natural sweetener.

Known as Sweta in the food industry and branded as Greenlite in the retailmarket, Malsagov said the sweetener is expected to contribute at least 80%of the company's sales revenue for this year.

Stevian currently produces Sweta for industrial use in Malaysia, the US,Russia, Indonesia and India.

"We plan to grow our international market and venture into five othercountries this year," said Malasagov, adding that the master plan includesa target of 30 countries by 2006.

"We expect Greenlite to generate RM1.5mil to RM2mil monthly revenue byfourth quarter of this year." Malsagov said.

The other seven products that are currently produced are forpharmaceutical and food companies.

According to Malsagov, most of these products are exported overseas,namely China and US as the demand in Malaysia is low. "Only 10% of theseproducts revenue comes from local industries," he said

Stevian’s master plan includes development of a stevia plantation tosupply raw material for its products. It currently imports stevia fromChina.

"Working with Malaysian Agriculture Research and Development Institute, weplan to complete this plantation by 2006." Malsagov said.

Other plans include production of powdered palm oil by year-end. Malsagovadds that ongoing research and development effort are looking at ways touse palm oil waste.

As a newcomer in the global applied microbiology industry, Stevian nowholds the smallest market share.

"Our vision is to be the largest company in the region and at least secondin the world," Malsagov said.

He added that the company is planning to get listed on the Mesdaq marketsome time next year.