Bengal Chemicals & Pharmaceutical Works Ltd.(BCPW) precursor of the present company, BENGAL CHEMICALS & PHARMACEUTICALS LTD.(BCPL) was established in 1901 by Acharya P.C. Ray, renowned scientist. It was the first Indian Company for production of quality Drugs & Pharmaceuticals, Chemicals and Home Products with indigenous technology with the objective to create awareness in the minds of Indians to become self-sufficient.
From initial venture with Drugs & Pharmaceuticals, the Company gradually expanded and diversified into wide range of product lines. Industrial Chemicals, Bulk Drugs, Perfumeries, Cosmetics, Toiletries, Hospital & Surgical Equipment, Fire Extinguisher etc. were some of the products, besides horizontal and vertical integration of its Chemical and Pharmaceutical product ranges.
It had always strived for excellence in quality and maintained leadership in technology upto 1950. The technology leadership of the Company declined in 60's and the Company became sick in 1970. The Company was nationalised in December,1980.
BCPL is having four factories two in Kolkata, one in Mumbai and one in Kanpur. The Company is having land (50 acres), good infrastrual facilities including hot line connection for supply of electricity and wide range of distribution network all over the country with more than 1500 Distributors.
The company was formally declared sick by the Board for Industrial and Financial Reconstruction (BIFR) on the 14th January, 1993. A revival package was approved by the BIFR on the 4th April, 1995.
The MDRS sanctioned by BIFR was further modified by the Company keeping in view its requirements for modernisation of plants & machinery and placed before BRPSE for its recommendations. The BRPSE at its meeting held on 25.8.2006 recommended for approval the modified revival plans
In December 2006, Government approved rehabilitation scheme for revival of the company. The approved rehabilitation scheme inter alia involves the following:
(i) Cash infusion by GOI - Rs. 207.19 crores
(ii) Waiver of Loans/Interest(As on 31.3.2005)- Rs. 233.41 crores
(iii) Waiver of Loan/Interest by the GOI not - Not quantified to be treated as income in terms of Income Tax Act.
As contemplated in the Rehabilitation Scheme, Rs. 117.19 crores was released in March 2007, and a provision has been proposed for budgetary support of Rs. 90.00 crores during 11th Five Year Plan.
BIFR is however yet to sanction the revival scheme and appoint a Operating Agency(OA).