The belief that "prevention is better than cure" and "health is better than wealth" has fuelled initiatives by traditional medicine maker Khao-La-Or Laboratories to branch out and produce herbal and health-supplement products.

Established in 1929, Khao-La-Or Laboratories, one of Thailand's recognised manufacturers of herb-based products, is managed by Watcharapong Pongboriboon, managing director and a third-generation family member.

"Growing consumers' concerns on health and beauty has led us to seek a remedy made from natural materials, as a way to avoiding chemicals," he said.

Due to increasing demands from consumers for better-quality medicine as well as new remedies, the new products have been developed.

Starting manufacturing new products in 1995 with garlic capsules and tablets, the company's new ranges include herbal medicine, instant herbal drinks, health food and cosmetic products.

"All raw materials are produced purely from Thai herbs," said Watcharapong, adding that the products are marketed under the concept "Quality for better health".

Also, the products are built up from a traditional Thai formula, together with new science and technology development to ensure product quality.

He recalled that the first product in the new category - garlic capsules - had been jointly developed with the German based Gesellschaft fur Technische Zusammenarbeit. It took five years to develop the garlic capsules, which maintain the potency of allicine.

After much research, the company is exporting to countries in Asia, including Hong Kong, Singapore and Taiwan, and is negotiating with agents in European countries and the United States.

Watcharapong said that the company saw the importance of investing in research and development, setting aside about 2-3 per cent of total revenue to regularly improve and develop new products as a means to drive business growth.

He believed that high product quality together with price competitiveness had been two major factors driving the company's export growth.

In 1998, the company launched its e-business website at www.khaolaor.com, as a way to promote its products internationally.

Through the website, its flagship product Kwao Krua (or Pueraria mirifica), which has been overwhelmingly accepted internationally, proved a hit - contributing 30 per cent of sales in 1997. But its popularity declined significantly after a rumour spread that it could lead to breast cancer.

The long debate over whether white Kwao Krua (Pueraria mirifica) could be harmful and even lead to breast cancer, has been wiped out by the recent ministerial announcement that the herb could be used as a supplemental hormone for menopausal women, enhance breasts and even create new brain cells to treat Alzheimer's disease. Research showed that herbs could even be useful in preventing breast cancer.

Watcharapong added that the new product category was also aimed at offsetting falling sales of traditional medicines -Ya Kwad Saman Lin, used to swab diseases occurring in a baby's mouth, and Asafoetida or Ya Manahing, which is used to heal a bloated system.

"Both traditional medicines, developed almost 70 years ago, are targeted at children's remedies," he said, adding that even though sales have not significantly dropped, they have been flat during the past 10 years.

However, according to the law, medicine manufactures are prohibited from advertising and publishing the medicine's quality to the public.

So far, the company has invested in research and development to improve the product's qualities and has changed the packaging design to attract customers. "For example, Asafoetida medicine used to be packed in a glass bottle. It is now filled a roll-on style package to make it more comfortable for consumers," he added.

Of the company's total sales, about 35 per cent is contributed by traditional medicine, while 65 per cent comes from its herb and health-supplement products.

However, Watcharapong did not disclose the company's sales revenue, saying only that 20-per-cent growth is projected for this year.