Central Public Sector Enterprises

There are five Central Public Sector Enterprises (CPSEs) under the administrative control of Department of Pharmaceuticals. Details of CPSEs are as under:

KARNATAKA ANTIBIOTICS & PHARMACEUTICALS LIMITED (KAPL), BANGALORE.

Karnataka Antibiotics & Pharmaceuticals Limited (KAPL) is a profit making Mini Ratna Central PSU having 59% of the equity shares of GoI and 41% of equity shares of Karnataka State Industrial and Investment Development Corporation (KSIIDC). The paid up share capital of the company as on date is Rs.13.49 crores. The Company was incorporated on 13th March, 1981 and the commercial production started from August, 1984. The manufacturing units and the registered office of the company is located at Bangalore (Karnataka). The main products are Pharmaceuticals formulations like tablets, capsules, injectables, etc.

Earlier, it was a Joint Sector Undertaking of Hindustan Antibiotics Limited (HAL) in collaboration with KSIIDC. But in the interest of continued growth and development of the company, the Government has implemented the delinking of KAPL from HAL and transferred the shareholding of HAL in KAPL in favour of Government of India. The Government of India has also invested Rs. 7.10 crore in KAPL for upgrading its manufacturing facilities conforming to WHO-GMP standards and setting up a new WHO-GMP compliant Cephalosporin plant. Other joint venture partner, viz. Karnataka State Industrial and Investment Development Corporation (KSIIDC) would bring in additional investment of Rs. 4.90 crore in KAPL. The company has got ISO-9001 and ISO 14001 accreditation.

It has been continuously generating profits for the last 13 years and the performance of the company has improved over the years.

(Rs. in Crore)

*Provisional

Product range of the company includes Antibiotics, Anti-diabetic, cardiovasculars, pain management, general medicines and animal health products. Presently, the Company is undertaking creation of separate manufacturing facilities for Cephalosporin product at an estimated cost of Rs.22.23 crores. The Project is likely to be completed by 2nd quarter of the financial year 2014-15. On completion of the project, it will be possible for the Company to increase its exports, as new range of products can be added to export basket.

RAJASTHAN DRUGS & PHARMACEUTICALS LIMITED (RDPL), JAIPUR.

Rajasthan Drugs and Pharmaceuticals Limited (RDPL) is a consistently profit making Central Public Sector Unit in Joint Sector with a total paid-up equity capital of Rs. 4.98 crores where Government of India (GoI) and Rajasthan State Industrial Development & Investment Corporation Limited (RIICO) hold 51% and 49% respectively. The company was incorporated in 1978 and commercial production started in 1981. The Company has its manufacturing facilities & registered office at Road no. 12, VKI Industrial Area, Jaipur (Rajasthan).

This is a formulation unit engaged in production of Tablets, Capsules, Liquid Orals, ORS Powder & Opthalmic medicines in a Schedule ‘M’ compliant facility.

The company, under the quality management, has a well-equipped laboratory with modern equipments like High Performance/Pressure Liquid Chromatography (HPLC), Fourier Transform Infrared Spectroscopy (FTIR) etc., for ensuring high quality parameters.

In order to ensure a sustainable growth and development of the company, the Government has delinked RDPL from Indian Drugs & Pharmaceuticals Ltd. (IDPL) (the original promoter representing GOI) and transferred the shareholding of IDPL in RDPL to Government of India in August 2010.

The Company has over the years enhanced its manufacturing capacities by installing new machines and at the same time, the workers have also acquired skills and expertise for attaining high productivity. The Company has changed its outlook and entered in the arena of select Public Sector Companies showing consistent profits amidst stiff competition. It is now fairly on the path of growth.

The company has carved for itself a name in the institutional market in India as a reputed manufacturer of high quality life saving drugs and other specialized medicines, with its marketing activities spread throughout the country.

The company is engaged in manufacture and selling of medicines of high quality at reasonable rates to the Govt. of Rajasthan, Central Government Institutions, viz ESIC, Defence, Railways, other PSUs and also to other State Govt. Institutions, and proud to be a prime partner in the novel and noble endeavor of Government of India in the implementation of Jan Aushadhi Scheme where quality generic (unbranded) medicines are made available to the public at large in the country at affordable prices through sales outlets.

The product range of the Company includes anti-infectives, anti-malarial, NSAIDS, antacids, analgesic, anti-pyretics & anti-imflammatory, anti-emetics, anti-spasmodics, anti-diarrhoeal/anti-amoebic, cough expectorants, cardio-diabetics, anti-allergic, anti-bacterials, anti-fungal, vitamins & mineral, ophthalmic preparations & Oral Rehydration Salt (ORS).

The company is further diversifying its marketing activities into Pharma Prescription Markets (Open Trade Sales), Veterinary Markets, Ayurvedic and other Indian system of medicines in order to enhance its market share and also in its endeavour to improve the profitability of the organization.

(Rs. in Crore)

*Provisional

The Company has embarked upon expansion, modernization and up gradation programme (Phase-II) to qualify for WHO (GMP) certification to become eligible for exploring International Markets as well as for participating in the Internationally Funded Projects of GOI and other Governments.

HINDUSTAN ANTIBIOTICS LIMITED (HAL), PIMPRI, PUNE

Hindustan Antibiotics Ltd. (HAL), Pune was incorporated on 30th March, 1954. This is the first Public Sector Company in drugs and Pharmaceuticals,with its plant at Pimpri. The company produces a wide range of Pharmaceutical formulations including agro-vet products. There are two joint sector units promoted by HAL in collaboration with the respective State Governments. These are Maharashtra Antibiotics & Pharmaceuticals Ltd. (MAPL) at Nagpur, Maharashtra (since closed) and Manipur State Drugs & Pharmaceuticals Ltd. (MSDPL) at Imphal, Manipur (since closed). Karnataka Antibiotics & Pharmaceuticals Limited (KAPL), Bangalore, which was earlier a Joint Sector Undertaking of HAL in collaboration with Karnataka Government, has since been de-linked from HAL after approval of the Government.

After establishment, the company made profits for several years. However, as the company started incurring continuous losses since 1993-94, it was referred to the Board for Industrial & Financial Reconstruction (BIFR) in January, 1997. BIFR declared the company formally sick on 31.3.1997 and appointed Industrial Development Bank of India (IDBI), Mumbai as the Operating Agency for a Techno-Economic Viability Study and Report. Accordingly, a Rehabilitation Scheme was prepared by HAL which was later revised on the directions of the BIFR and the Government.

Based on the Scheme, the Government approved the package for Rehabilitation of the company on 9th March 2006, followed by BIFR approval on 5th June 2007. The Rehabilitation Scheme inter alia included the following:-

(* This includes interest free loan of Rs. 56.96 crores to be repaid by HAL by sale of land within a period of two years.)

The entire cash infusion of Rs. 137.59 crores has been released to the company. The Parliament has approved writing off of loan and waiver of interest to the extent of Rs. 259.43 crores. As regards generation of Rs. 56.96 crore as part of Cash Infusion, BIFR issued guidelines for sale of land as per the Rehabilitation Scheme through an Assets Sale Committee. Action is under progress by HAL in this regard.

Further, the Government has approved a proposal of HAL to the tune of Rs. 30.17 crore for setting up new powder injectable facilities for Cephalosporin and up gradation of existing vial ling facilities for Betalactum (Penicilllin) Antibiotics complying to WHO-GMP standards at an estimated cost of Rs. 20.17 crores and for upgradation of manufacturing facilities of Tablet, Capsule and Liquid Sections complying to WHO-GMP standards at an estimated cost of Rs. 10.00 crore in order to make the company further viable.

HAL has completed the work on Cephalosporin block in a record time of 9 months. It has commissioned commercial production in February, 2009 and also obtained WHO-Certification for the same. Work relating to upgradation of existing vial ling facilities for Betalactum Antibiotics has also been completed.

(Rs. in Crore)

* Provisional

BENGAL CHEMICALS & PHARMACEUTICALS LIMITED (BCPL), KOLKATA

BCPL was basically a chemicals manufacturing company set up in the private sector in 1901 by Dr. Acharya P.C. Roy, the great visionary and scientist. Later, on being sick, it was taken over by the Government and nationalized on 15th December, 1980. A new public sector company in the name and style of Bengal Chemicals & Pharmaceuticals Limited (BCPL) was incorporated in March, 1981.

The company has four manufacturing units at Maniktala (Kolkata), Panihati in North 24 Parganas (West Bengal), Mumbai (Maharashtra) and Kanpur (UP). Besides, the company is having nine sales outlets and three C&F agencies spread all over India. The company manufactures and markets a wide range of industrial chemicals, drugs and Pharmaceuticals besides cosmetics and home products. In the home products, the well known products include Cantharidine Hair Oil and Lamp Brand Phenol.

Since 1980, the company continued its operations. However, due to continued losses, the company was declared sick by the Board for Industrial and Financial Reconstruction (BIFR) on 14th January, 1993. A Revival Package was accordingly prepared & approved by the BIFR on 4th April, 1995. The package was reviewed by BIFR from time to time, based on which a Modified Revised Rehabilitation Scheme was then prepared. BIFR approved this Modified Scheme on 14.1.2004.

Finally, based on the requirements for modernization of plants & machinery, the Board for Reconstruction of Public Sector Enterprises (BRPSE) at its meeting held on 25.8.2006 recommended a modified revival plan for BCPL.

The recommendations of BRPSE were confirmed by the Cabinet Committee on Economic Affairs (CCEA) in its meeting held on 21st December 2006. The Revival Scheme, interalia, included:

1. Cash infusion by GOI - Rs. 207.19 crores
2. Write off/Waiver of Loans/Interest - Rs. 233.41 crores

The Parliament has approved writing off of GOI loans & interest of Rs. 233.41 crore and cash infusion component of Rs. 207.19 crore was also released. Thereafter, the company appointed Consultants for undertaking the work of upgradation & modernization of plant & machinery including compliance with Schedule ’M’/WHO-GMP standard.

Upgradation & Modernization Projects including capacity augmentation for Chemical Plants at Panihati (West Bengal) and in Pharmaceutical Plants at Maniktala(Kolkata) and Kanpur have been undertaken. In addition, Greenfield Projects for Cephalosporin and Betalactum range of products are under commissioning at Maniktala. Upgradation of Ointment, Stores Building, Batalactum, Cepahlosporin Blocks, ETP, Roads, drains etc. are also completed at Maniktala. Upgraded Phenol Manufacturing and filling, Composite Production Block, Renovated Alum Plant, QC Block, Finished Goods Stores, Administrative Block and other allied services are in operation at Panihati after renovation.

The Upgradation and Modernization of Tablet, ORS Powder ( oral solid doses), Liquid Home Product Sections, HVAC, electric work etc. are in progress at Kanpur. Modernization of QA Block, Utilities, Amenities, ETP completed at Kanpur.

(Rs. in Crore)

* Provisional

INDIAN DRUGS & PHARMACEUTICALS LIMITED (IDPL), GURGAON

Indian Drugs and Pharmaceuticals Ltd (IDPL) was incorporated on 5th April, 1961 for achieving India’s goal towards self-sufficiency and self-reliance in the field of drugs and pharmaceuticals, particularly with the primary objective of creating self sufficiency in essential life saving drugs and medicines. IDPL is the largest Central Pharma Public Sector Undertaking in India with plants at Rishikesh (Uttarakhand), Hyderabad (Andhra Pradesh) and Gurgaon (Haryana) and wholly owned subsidiaries, namely, IDPL (Tamil Nadu) Ltd., Chennai (Tamil Nadu) and Bihar Drugs & Organic Chemicals Ltd.(BDOCL) at Muzaffarpur (Bihar). In addition, IDPL has one joint sector undertaking, promoted in collaboration with the Orissa State Government, namely, Orissa Drugs & Chemicals Ltd. (ODCL) Bhubaneswar.

IDPL played a major role in the strategic National Health Programmes like Family Welfare Programme & Populations Control (Mala-D & Mala –N) anti-malarials (Chloroquine) and prevention of dehydration (ORS) by providing quality medicines.

IDPL played a major role in the strategic National Health Programmes like Family Welfare Programme & Populations Control (Mala-D & Mala –N) anti-malarials (Chloroquine) and prevention of dehydration (ORS) by providing quality medicines.

IDPL was formally declared sick by the Board for Industrial & Financial Reconstruction (BIFR) on 12th August, 1992. A revival package for the company was formulated and approved by BIFR on 10th February, 1994. However, after taking into account the performance of the company which fell short of the targets, the BIFR on 23.1.1996 treated the sanctioned package as failure, and thereafter, in its meeting held on 4.12.2003, BIFR confirmed its prima-facie opinion about winding up of IDPL in terms of Section 20(1) of the Sick Industrial Companies (Special Provisions) Act, 1985.

However, given the possibility of revival of the company, the erstwhile Department of Chemicals & Petrochemicals (Now Department of Pharmaceuticals) filed an appeal against the opinion of BIFR in Appellate Authority for Industrial & Financial Reconstruction (AAIFR) on 10.2.2004.

Consequently, an Expert Committee was appointed in September, 2004, to study the Techno-Financial Feasibility of rehabilitating IDPL. In this connection, a Technical Audit of various plants of IDPL was also assigned to National Institute of Pharmaceutical Education and Research (NIPER), Mohali. NIPER in its report submitted to the Department on 31.8.2005, recommended revival of all plants of IDPL and its subsidiaries in phases for production of existing and new products. IDBI, the then Monitoring Agency on behalf of BIFR, supported the recommendations for revival of IDPL subject to certain conditions.

Accordingly, in a meeting held under the Chairmanship of the then Minister (C&F&S), it was decided to revive all the five units of IDPL in a phased manner.
Hon’ble AAIFR at its hearing on 13.9.2005 set aside the impugned order of BIFR dated 4.12.2003 and remanded the matter back to BIFR for taking further action for rehabilitation of IDPL.

A Draft Rehabilitation Scheme for revival of Indian Drugs & Pharmaceuticals Limited (IDPL) was considered by the Board for Reconstruction of Public Sector Enterprises (BRPSE) at its meeting held on 9.3.2007 and recommended for approval. The scheme was placed before the Cabinet for approval. The Cabinet considered the proposal in its meeting held on 17.5.2007 and referred it to Group of Ministers (GoM) for consideration at the first instance. GoM was constituted on 1.6.2007. The first meeting of the GoM was held on 11.10.2007. Based on the recommendation of GoM, a Pre-Feasibility Report was prepared by an Expert Agency, Ernst & Young. Now the revival scheme of the company is under the consideration of the Government.

Despite being a sick company, during sudden outbreak of Plague in 1994, IDPL was the only company which played a pivotal role in supplying Tetracycline to the affected areas. Similarly, company had made uninterrupted supply of Chloroquine to combat Malaria epidemic in different parts of the country. In 2005 to combat national emergency (Leptospirosis) arising due to floods in Maharashtra, IDPL had supplied required Doxycycline Caps within no time.

(Rs. in Crore)

* Provisional

Presently, under different Class of Therapeutic Medicines, around 96 generic/branded drugs covering tablets, capsules, injection, vitamins, ORS pouches etc. are being manufactured in various plants of IDPL.

For further details the website of IDPL www.idpl.gov.in may please be seen.