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Purchase of raw materials

For manufacture of our products, we use the herbs purchased from various regions of Russian Federation as well as in nearer and farther foreign countries. The providers of the raw materials are corporations and individual businessmen. For purchase of the raw materials, the major attention is paid to the quality. The raw materials, whose quality does not comply with the requirements of the State Pharmacopoeia and Pharmacopoeial Articles, are not used in production but returned to the providers.
At the present time, we purchase 59 positions of the raw materials on the regular basis. The prices and terms of payment for the purchased raw materials are agreed with each provider individually with respect to the quantity of offered raw materials and other factors.
In addition to purchase of raw materials, our Company concludes the en;hange contracts with the providers. The share of such transactions in the total number of transactions, which are concluded for purchase of raw materials, is about 15 per cent.


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