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Central Public Sector Enterprises

There are five Central Public Sector Enterprises (CPSEs) under the administrative control of the Department of Pharmaceuticals. Of the five PSUs, three viz. Indian Drug & Pharmaceuticals Limited (IDPL), Hindustan Antibiotic Limited (HAL) & Bengal Chemicals & Pharmaceuticals Limited (BCPL) are sick and referred to Board for Industrial & Financial Reconstruction (BIFR). Rajasthan Drugs & Pharmaceuticals Limited (RDPL) has reported losses since 2013-14 and is incipient sick. Karnataka Antibiotic & Pharmaceuticals Limited (KAPL) is the only profit making CPSE

(As on 2017-18)

Established in 1954 1961 1978 1980 Nationalized 1981
Classification Sick Sick Incipient Sick Sick Profit making
Net worth(in cr.) -610.76 -7147.23 -24.65 -184.60 174.95
Turnover ( in cr.) 39.57 84.22 36.53 88.19 382
Operating profit/loss( in cr.) -69.48 11.33 -13.50 8.91 27.50
Liabilities ( in cr.) 1250 10779.20 103 230.55 9.06
Referred to BIFR 1997 1992 No 1992 NA
No. of Employees 1010 42 152 332 712
Officer level 250 7 52 70 239
Worke level 760 35 100 262 473
Total land 267 acre 2003 acre 9.35 acre 72.89 acre 37.34 acre
Leasehold Nil 1022 acre 9.35 acre 1.10 acre Nil
Freehold 267 acre 981 acre Nil 71.79 acre 37.34acre

Cabinet decisions on Pharma PSUs

  1. The Cabinet is its meeting held on 28.12.2016 decided that:

    1. Only that much of surplus land of HAL, IDPL, RDPL and BCPL as would be required to meet the liabilities be sold through open competitive bidding to Government agencies and the outstanding liabilities be cleared from the sale proceeds. Voluntary Separation Scheme/ Voluntary Retirement Scheme also be implemented in these PSUs to pave way for their closure. Remaining part of the land should be managed in accordance with guidelines of Department of Investment and Public Asset Management (DIPAM) and Department of Public Enterprises (DPE) in this regard and if need be, vested in a SPV created for this purpose.
    2. After liabilities have been met, balance sheet cleansed and the Voluntary Separation Scheme/Voluntary Retirement Scheme effected, the Department to close IDPL and RDPL and HAL and BCPL be put up for strategic sale.
    3. While taking a decision to close the PSUs, the Department may also explore the possibility of hiving off the subsidiary companies of HAL and IDPL for private participation, wherever found viable.
  2. Cabinet Committee on Economic Affairs (CCEA) in its meeting held on 1.11.2017 has 'in principle' approved strategic disinvestment of 100% Government of India equity in Karnataka Antibiotics & Pharmaceuticals Limited (Karnataka Antibiotics & Pharmaceuticals Ltd.) Bangaluru through a two-stage auction process, wherein the first stage would lead to a shortlist of eligible bidders, and the second stage be competitive financial bidding. The valuation of the firm would be done using a combination of Discounted Cash Flow method, relative valuation and asset-based valuation of the firm's land.

Indian Drugs and Pharmaceuticals Ltd. (IDPL)


Indian Drugs & Pharmaceuticals Limited (IDPL) was incorporated as a public limited company on 5th April, 1961 under the Companies Act, 1956 The main objectives of the company were to create self-sufficiency in respect of essential lifesaving medicines, to free the country from dependence on imports and to provide medicines to the millions at affordable prices. IDPL was basically conceived and established as a part of Healthcare Infrastructure and has played a pioneering infrastructural role in the growth of Indian Drugs Industry base

The Registered Office of the Company is located at IDPL Complex, Dundahera, Gurgaon and its Head Office at SCOPE Complex, Lodhi Road, New Delhi. The company has three main Plants at Rishikesh (Uttarakhand), Gurugram (Haryana), Hyderabad (Telangana) and two 100% wholly owned subsidiaries, namely, IDPL (Tamil Nadu) Limited, Chennai (Tamil Nadu) and Bihar Drugs & Organic Chemicals Limited (BDOCL) at Muzaffarpur (Bihar). In addition, IDPL has one Joint Venture, promoted in collaboration with Industrial Promotion & Investment Corporation of Orissa Limited (IPICOL), Government of Odisha, namely Odisha Drugs & Chemicals Ltd. (ODCL) Bhubaneswar having share of 51% and 49% respectively.

IDPL played a major role in the strategic National Health Programmes like Family Welfare Programme & Populations Control (Mala-D & Mala-N), anti-malarial (Chloroquine) and prevention of dehydration (ORS) by providing quality medicines. IDPL has encourage indigenous production and supporting Government in meeting emergent situations in Cyclone, Flood and Earthquake in Odisha, Uttrakhand and J&K providing lifesaving medicines on time. IDPL has always supplied quality medicines and its presence has played a price balancing role in the competitive and business environment.

Past Achievements:

The main objectives of setting-up IDPL were not to earn profits but to encourage indigenous production of pharmaceuticals and to support various health programmes of the Central Government. IDPL did reasonably well on this account despite the fact that it was the first integrated and monolithic venture in the public sector engaged in production of low margin products. IDPL earned Profit before Depreciation, Interest & Tax (PBDIT) from 1965 to 1968 and again from 1971 to 1974. It earned net profit from five years continuously from 1974 to 1979; the Company lost its profitability primarily due to change in Government policy about import of bulk drugs from supply to pharmaceuticals Industry. The Imports, which were canalized through IDPL till 1979, were entrusted to State Trading Corporation (STC). IDPL was thus divested of a profit making segment.

Reasons for sickness:

The net worth of the IDPL became negative in 1982-83, mainly on account of:

  1. large monolith-type integrated production facilities producing chemicals, Bulk Drugs and Formulations;
  2. Out-dated Plant & Machinery and obsolete technology for Bulk Drugs
  3. Excess manpower, high wages/salary bill and maintenance of huge township, schools and hospitals in all locations of IDPL.
  4. Medicines manufactured by IDPL were under Drugs Price Control Order (DPCO) by the Government prior to liberalization in 1991.
  5. Shift in Government policy resulting in shifting of the canalization agency from IDPL to State Trading Corporation (STC).
  6. Intense competition from private pharmaceuticals companies which did not have to bear the burden of social infrastructure of setting up and maintaining townships, schools, hospitals etc. and had leaner production facilities.

Revival plans:

The erstwhile Board for Industrial & Financial Reconstruction (BIFR) declared IDPL as a sick industrial Company in August. 1992. In February, 1994, BIFR approved the Rehabilitation Scheme under Section 17(2) of SICA. The package, however, failed primarily because:

  1. full funds were not released to the company as envisaged
  2. capital restructuring was not done
  3. banks did not provide adequate working capital requirements
  4. working capital were diverted to meet fixed expenses of subsidiary units.
  5. Land could not be sold
  6. sales targets were fixed at very ambitious levels.

In January, 1996, BIFR appointed Industrial Development Bank of India (IDBI) as Operating Agency (OA) for Techno-Economic Analysis and preparation of Revival Package. The issue of revival of the company remained pending in BIFR as well as with the Govt. while attempts were made in 2001-02 to privatize the Company. OA (IDBI) however, did not find any proposal worthy of recommendations to BIFR.

After failure to privatize, BIFR ordered winding–up of the company in December, 2003. Govt. filed an appeal before Appellate Authority for Industrial Financial Reconstruction (AAIFR) against BIFR order. AAIFR. While admitting the appeal filed by the Government directed that a Road Map for revival of IDPL be submitted. An Expert Committee, constituted by the Department found the Plant & Machineries for production of formulations in a reasonably good shape which could be optimally utilized with minimal investment for compliance of Scheme-M requirements. It was also opined that the emerging position of IDPL in the present market scenario was to be conceptualized. IDBI supported the recommendations of the Expert Committee. Having regard to these developments, AAIFR in its hearing held in September, 2005 set aside the winding up order and remanded the matter back to BIFR for taking further action for Rehabilitation of IDPL and to pass further orders in accordance with Law.

Accordingly, a Draft Rehabilitation Scheme (DRS) was prepared by IDPL and submitted to the BRPSE for consideration and recommendation. After approval of the BRPSE, a Note for Cabinet Committee on Economic Affairs (CCEA) was prepared and submitted for approval on 11.5.2007. The Note was considered by CCEA in its meeting held on 17.5.2007 and it referred the matter to Group of Ministers (GoM). The GoM in its meeting held on 11.10.2007 advised that IDPL’s revival plan should be based on public interest goals and ensuring the viability of the Company. In view of the observations made by GoM, IDPL appointed a leading consultant Company E&Y to carry out the feasibility study. E&Y report was submitted to the Ministry/DoP.

A revised DRS again prepared in consultation with IDBI (OA), on the basis of report prepared by E&Y, taking cut-off date as 31st March, 2011. In the BIFR meeting held on 20.8.2014 cut-off date was approved as 31.3.2014. Accordingly, the revised updated DRS was prepared and submitted to the Department in January, 2015. However, the Cabinet in its meeting held on 28.12.2016 recommended for closure of the company after meeting its liabilities from the proceeds of sale of surplus land through open competitive bidding to Government Agencies. The follow-up action for implementation of the decision is under way.


a) IDPL (Tamil Nadu) Ltd, Chennai.

IDPL (TN) Ltd. Chennai was incorporated in September, 1965, initially it was a Surgical Instruments Plant and later diverted for formulations. In terms of revival package approved by BIFR in 1994 this Plant was converted into a wholly owned subsidiary in the name and style of IDPL (Tamilnadu) Limited, Chennai with effect from 1.4.1994. IDPL (Tamilnadu) is a Schedule-M compliant plant and engaged in manufacture of pharmaceuticals formulations.

b) Bihar Drugs & Organic Chemicals Ltd. (BDOCL), Muzaffarpur

Bihar Drugs & Organic Chemicals Ltd., Muzaffarpur was incorporated in 1979, converted into a wholly owned subsidiary with effect from 1.4.1994. IDPL holds the entire equity capital of this Unit. Since November 1996 there is no production activity in BDOCL Plant .

Joint Venture

Orissa Drugs and Chemicals Ltd (ODCL)

Orissa Drugs & Chemicals Limited (ODCL) was incorporated in 1979 and commissioned fully for production from September, 1983. ODCL is a Joint Venture promoted by Indian Drugs & Pharmaceuticals Ltd. (IDPL) and Industrial Promotion & Investment Corporation of Orissa (IPICOL). IDPL holds 51% of the equity shares and 49% is with IPICOL. BIFR passed orders for winding up in April, 2003 under the provisions of SICA Act, 1985. High Court of Orissa had appointed a provisional Liquidator. This has since been stayed by a larger Bench of the Odisha High Court.

Presently Company is engaged in manufacture of pharmaceuticals formulations in the form of Tablets, Capsules, Powder, ORS and Injectables etc. ODCL Plant is Schedule-M compliant and company has earned operating profit since 2011-12


IDPL Hyderabad (New Formulation Unit) has started production after obtaining all necessary statutory clearances including Drug Licence for manufacturing of 35 items, i.e., Tablets including ARV’s, Anti Tuberculosis and 4 different types of Ointments. Installed capacity of this Unit is 2.5 lac tablets per hour (depends up on tablet size) and 10000 ointment tubes per day (15 gm tube). Hyderabad Plant has received orders for 90,000 tubes of ointments and 5,00,000 of tablets. This Unit is in a position to produce different types of tablets and ointments as per market demand and can meet export requirements.

Modernization of Plants (Government assistance projects and status):

To make all IDPL Plants WHO-GMP compliant fund of Rs 7.40 Cr has been released by the Govt. and Up-gradation & Modernization of IDPL Plants are in progress. Rishikesh Plant is Schedule ‘M’ and WHO-GMP compliant. COPP has been received for 9 products. Whereas Gurgaon Plant Tablets Section is also Schedule-M compliant.

Product profile and Range:

Presently, IDPL is manufacturing nearly 86 products (PPP) and 25 products (Non-PPP) in the form of Capsules, Tablets, Dry Syrup, Liquid Oral and Injection.ORS, based on mainly following therapeutic groups:

  • Antibacterial /Anti-infective
  • Analgestic /Anti-inflammatory
  • Gastrointestinal
  • Respiratory Tract
  • Contraceptive/OCP
  • Vitamins/ Mineral
  • Anti allergic
  • Anti fungal Antimalarial Anti diabetic Cardiovascular.

New Products launched:

  • Cefexime 100 mg, & 200 mg.
  • Cefuroxime Axetil 250mg & 500mg.
  • Aceclofenac 100mg
  • Aceclofenac 100mg.
  • Paracetamol 500mg
  • Glimpride 1mg & 2mg
  • Atorvastatin 10mg, & 20mg.
  • Ciporal 250mg & 500mg
  • Metformin 500mg
  • Pentoprazole 40mg.

Popular Brands: Deacos,110 ml, Sukcee Tab, Cebxin-Z are popular brands.

Manpower: Presently IDPL has 28 regular employees and 106 on contractual basis in different location of the Company including 100% wholly owned Subsidiaries. Company appointed contractual manpower only in statutory and critical position.

Distribution network: Company is selling its products through distribution networks of 19 Depots (C&F) to Institutions located all over the India.

(Rs in Crore)

Subject 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18
Production 50.78 58.71 62.83 71.50 87.94 21.30 33.15
Sales 50.69 59.47 60.18 63.50 86.41 19.64 84.22

Marketing: The Company is supplying its products to Govt. Institutions on PPP as per NPPA certified rates. Major Institutional are ESIC, Ministry of Health, Defence, Railways, State Governments/Corporations and Public Sector Enterprises Hospitals who place orders under different categories of Therapeutic Medicines. Apart from above the company is fully supporting Pradhan Mantri Jan Aushadhi Yojna.

Conclusion: IDPL has also played a major role in the strategic National Health Programmes like Family Welfare Programme & Population Control (Mala-D & Mala-N) anti-malarials (Chloroquine) and prevention of dehydration (ORS) by providing quality medicines. IDPL has encouraged indigenous production and intervention for price control in market by manufacturing generic drugs.

Hindustan Antibiotics Ltd. (HAL)

Hindustan Antibiotics Ltd. (HAL), a wholly owned Central Public Sector Undertaking under the administrative control of the Departments was incorporated in 1954. The registered office and manufacturing facilities of the company are located at Pimpri, Pune, Maharashtra. The Company was set up for manufacturing of bulk drugs and lifesaving drugs and formulations. Over the years several new products were added / undertaken for manufacturing like those used in agriculture and veterinary medicines. The authorized share capital of the Company is Rs.100 crores. As on 31st March, 2017, the subscribed and paid-up share capital is Rs.71.71 crores. The Union Cabinet in its meeting held on 28.12.2016 decided for strategic sale of Hindustan Antibiotics Ltd. (HAL). The liabilities will be settled through sale of surplus land. The follow-up action for implementation of the decision is under way.

The details of production, sales and net profit / loss are as under:

(Rs in Crore)

- 2016-17 2017-18
Production 11.36 37.44
Sales Turnover 10.73 39.57
Net Profit(Loss) (78.24) (68.58)

HAL is passing through critical financial crisis due to shortage of working capital required for running its operations. Salaries of the employees and many of the statutory payments like Provident Fund, Gratuity, Income tax, Sales Tax etc. are also outstanding. The working capital facilities are also not forthcoming from the Banks as the Company’s account has become NPA.

Reasons for sickness:

The Company is incurring losses since 1992 and was declared sick in 1997. Rehabilitation plan of 2006 for Rs. 137.59 crore (Rs. 80.63 crore budgetary support and interest free loan Rs. 56.96 crore) did not succeed. Second rehabilitation proposal for infusion of Rs. 670.46 crores was proposed. However, the Cabinet approved selling of its surplus and vacant land to Government/PSUs/Autonomous Bodies to meet its liabilities. The Government also approved waiver of Rs. 307.23 crore of Central Government loans and deferment of liabilities amounting to Rs. 128.68 crores and sanctioned immediate loan of Rs. 100 crores for meeting salaries, wages and critical expenses. It has been further decided to strategically sell the Company after meeting its liabilities, effecting VRS/VSS and cleansing the balance sheet.


The total value of production during the year 2016-17 is Rs.11.36 crores as compared to Rs.14.45 crores during the previous year. During 2017-18 till November 2017, the comapony has achieved production of Rs.18.07 crores and expected to achieve Rs.35.00 crores till 31.03.2018. The sale during 2017-18 till November 2017 is Rs.16.97 crores and expected to achieve Rs. 32.00 crores till 31.3.2018.

In addition to Cephalosporin and Penicillin powder injectable, Tablets, Capsules, Agriculture product (Streptocycline) and Narcotic Detection Kit contributed to the production. Capacity utilization and the production of various products were affected due to non-availability of bulk and packing material as per the plan due to working capital shortage. In the total production of Rs. 11.36 crores, single product Streptocycline contributed Rs.8.79 crore ( 77.38% of total Production) against Rs. 10.95 crores in the previous year. Narcotic detection kit production value was 0.82 crores (7.22 % of total production)


During the year 2016-17 the Company achieved sales turnover of Rs.10.73 crores compared to Rs.15.12 crores during the previous year. During the year 2017-18 company intend to achieve sales turnover of Rs.32.00 crores. Marketing Dept. have successfully achieved following activities during 2016-17.

  1. Successfully bagged and completed first order from Telangana, for Antibiotic range of products.
  2. Successfully developed and supplied skin de-contamination kits and Prussian Blue Tablets to Institute of Nuclear Medicine and Allied Science (INMAS), Defence Establishment.
  3. Supplied Narcotic Kits to Narcotic Control Bureau worth of Rs. 90 lacs till 30.9.2017 and is expecting further order of Rs. 90 lacs to be executed by 31.03.2018.

Research & Development

During 2016-17, Research & Development Department developed the following:-

  1. Newer Formulations which are under development which covers number of conventional dosage forms especially anti-inflammatory, anti-histaminic and anti-infective drugs under BPPI scheme.
  2. Development of various Decorporating Drugs for Institute of Nuclear Medicines and Allied Sciences (INMAS), DRDO, New Delhi.
  3. Improvement and manufacturing of Standard size Narcotic Drugs Detection Kits, Precursor Chemicals Detection Kits and Ketamine Detection Kits to make them more users friendly as per the requirements of Narcotic Control Bureau, Govt. of India, New Delhi.
  4. Improvement and cost saving in various drug formulations.
  5. Production of Non sterile Penicillinase.
  6. Developing Anti Tuberculosis Kit.
  7. Preparation of Potash Solubilizing bacteria and NPK Formulation which are ready for commercialization.


(i) Maharashtra Antibiotics and Pharmaceuticals Ltd (MAPL) at Nagpur is a joint venture with HAL owning 59% share, SICOM (Small Industrial & Investment Corporation of Maharashtra) 33% and IDBI 8%. The company is not doing any production since 2006. BIFR has ordered winding up of the company, which has been confirmed by AAIFR. The winding up order has been stayed by the Hon’ble High Court at Bombay, Nagpur Bench on the Writ Petition filed by the Group of Employees of MAPL. As per the order of the Hon’ble High Court at Bombay, Nagpur Bench, the Voluntary Separation Scheme (VSS) in MAPL has been implemented and all the employees have been relieved under the VSS with the help of the funds released by the Govt. of India. Additionally, the Government has also released non-plan loan amounting to Rs.8.5 crores for payment of outstanding dues of the employees of MAPL through the Company and the amount has been disbursed to the employees of MAPL. In pursuance of the Cabinet decision, efforts are under way to explore the possibility of developing 12.5 acres leasehold land of MAPL through private participation.

(ii) Manipur State Drugs and Pharmaceuticals Ltd ( MSDPL), Imphal - HAL owns 51% share and Manipur Industrial Development Corporation (MANIDO), Governemtn of Manipur owns the remaining 49% share. The operations of Manipur State Drugs & Pharmaceuticals Ltd. (MSDPL) have been closed as per the decision made by its Board of Directors and necessary compensation on closure of MSDPL has been paid to the employees of MSDPL through the funds released by the Govt. of Manipur. In pursuance of the Cabinet decision, efforts are under way to explore the possibility of using the land through private participation.

Karnataka Antibiotics & Pharmaceuticals Ltd. (KAPL)


Karnataka Antibiotics and Pharmaceuticals Limited (KAPL) is a Profit making Joint Sector Company incorporated in the year 1981 [with 59% share by Government of India and 41% share by Government of Karnataka through Karnataka State Industrial and Infrastructure Development Corporatio(KSIIDC)]. The basic objective of the Company is to make available life-saving drugs of good quality to Government Hospitals and other Institutions along with Private Medical Practitioners. The Company has WHO-GMP Certified manufacturing facilities for Dry Powder Injectable, Liquid Injectable, Tablets, Capsules, Dry Syrups and Suspensions. The paid-up share capital of the Company as on date is Rs. 13.49 crores.

The Cabinet Committee on Economic Affairs (CCEA) in its meeting held on 01/11/2017 has accorded 'in principle' approval for strategic disinvestment of 100% Government of India equity in Karnataka Antibiotics & Pharmaceuticals Ltd (KAPL) through a two stage auction process as the first stage leads to a shortlist of eligible bidders and the second stage is competitive financial bidding. The valuation of the firm may be done using a combination of discounted cash flow method, relative valuation and asset-based valuation of the firm’s land. The follow-up action for implementation of the CCEA decision is under way.

Production and sales performance:

(Rs in Crore)

Financial Year Production Sales
2013-2014 275.73 241.59
2014-2015 281.81 274.24
2015-2016 342.01 326.92
2016-2017 405.51 386.27
2017-18 366.82 382.00

Past achievements:

  • Mini Ratna CPSE
  • SO 9001 (QMS) AND ISO 14001 (EMS)
  • PIC/S Certification

Popular brands:

Pharma - Trade

No Products Therapy Segments NLEM Monopoly Market Value
1 Grenil Group Anti-Migraine No No Rs. 15.00 Crs
2 Cyfolac Forte Group Pre & Probiotics No No Rs. 5.00 Crs
3 Remcc Group Cough & Cold No No Rs. 3.00 Crs
4 Zinfe Group Haematinic No No Rs. 2.00 Crs
5 Verclav Group Antibiotc Yes No Rs. 4.00 Crs
6 PoP-e Platelet Booster No No Rs. 2.00 Crs


No Products Therapy Segments Monopoly Market Value
1 K-Cycline Insecticides NO Rs. 3.00 Crs
2 Kalvimine Group Feed Supplement NO Rs. 2.64 Crs
3 K-Live Hepato - Protective NO Rs. 2.27 Crs

Distribution Network:


The Company has been expanding its operations in Retail Trade Sector with a planned effort so as to cater to the needs of the Private Medical Practitioners. In this direction the Company has been periodically launching New Products in the various Therapeutic Segments. The domestic operations spans through the country manned by a highly dedicated Professional Field Force and backed by a well-knit channel of Distribution ensuring KAPL’s presence at the Metro as well as Micro Markets. KAPL has its Branches located in almost all the State Head Quarters. The Company also has an excellent Distribution Network at almost 20 branches at Major Cities catering to the respective State area through Channel Marketing. The supplies are made effective through approved Stockists to Retailers, Nursing Homes and Dispensing doctors in the Trade Segment and directly to Institutions in Rate Contract (RC) & Non-Rate Contract (NRC) Sectors.



The Company has been mainly focusing on Prescription Market as Medical Professional as customers, where many of the MNCs and Private Pharma Players have a major share. The Company is also dependent on PPP Policy for Institutional Business, where the concentration is on Govt. Hospitals, State Government Hospitals, Corporates, PSU Hospitals, Defence and Insurance. It has potential to expand in Trade Segment and also to increase volumes by focusing on CPSE Hospitals and large Corporate Hospitals.


The Company is focusing on Agro Dealers, Department of Agriculture/ Horticulture for Agro Products. Products are being focused on Veterinary Practitioners, Farmers, Animal Husbandry Department of all States and Milk Unions for Veterinary Products and Feed Supplements.

New Products (Pharma & Agrovet)

Sl. No Products Therapeutic Category
a) Cyfolac Suspension Probiotic
b) Fluvet “Pour on” Liquid 30ml/50ml/100ml For control of TICKS
c) Gomilk Power Bolus 4s Feed supplement to augment FAT and SNF content of Milk

Future plans:

The new Non-Parenteral Project is under progress and Commercial Production is likely to start in January 2018.

The Cabinet Committee on Economic Affairs (CCEA) in its meeting held on 1.11.2017 has ‘in principle’ approved strategic disinvestment of 100% GOI equity in KAPL. DIPAM has constituted an Inter-Ministerial Group (IMG) in this regard on 13.11.2017. Department of Pharmaceuticals have constituted Evaluation Committee and Selection Committee on 20.12.2017 for selection of Asset Valuer for strategic disinvestment of the Company.

KAPL as sole manufacturer of Oxytocin in the country

The High Court of Himachal Pradesh, Shimla has in its judgement dated 15/03/2016 in CWPIL No. 16 of 2014, observed that there is large scale clandestine manufacture and sale of drug Oxytocin leading to its grave misuse, which is harmful to animals and humans. Further, it observed that the feasibility of restricting the manufacturing of Oxytocin only on Public Sector companies and also restricting and limiting the manufacturing of Oxytocin by companies to whom licenses have already been granted should be considered. As per the directions of PMO, Ministry of Health and Family Welfare vide its notification dated 27/04/2018, has notified that KAPL would be sole producer and primary supplier of Oxytocin in the country w.e.f. 01/07/2018 (now extended for 2 months, w.e.f. 01/09/2018). The Oxytocin formulations manufactured by the KAPL would be supplied only:

  1. to the registered hospitals and clinics in Public and private sector directly, or
  2. to the Pradhan Mantri Bhartiya Jan Aushadhi Pariyojna (PMBJP) and AMRIT outlets in the country which in turn would supply the drug for its therapeutic usage to the registered hospitals and clinics in Public and Private sectors.

KAPL is ready to commence operations for manufacture of Oxytocin w.e.f. 01/07/2018

Bengal Chemicals & Pharmaceuticals Ltd. (BCPL)


Bengal Chemicals and Pharmaceuticals Limited (BCPL), erstwhile Bengal Chemical and Pharmaceutical Works Limited (BCPW) was constituted in 1901 by Acharya Prafulla Chandra Roy, a renowned scientist and academician. Government of India nationalised BCPW in 1980 under the name Bengal Chemicals & Pharmaceuticals Limited (BCPL) in 1981. The company was declared sick in 1992 and was sanctioned scheme for revival in 1995 by the erstwhile Board for Industrial & Financial Reconstruction (BIFR). In 2004, the scheme of revival was modified and the plan was sanctioned by BIFR. The Union Cabinet in its meeting held on 28.12.2016 decided for strategic sale of Bengal Chemicals & Pharmaceuticals Ltd (BCPL). The liabilities will be settled through sale of surplus land. The follow-up action for implementation of the decision is under way.

Business Operations:

Headquartered in Kolkata, BCPL is engaged in the business of industrial chemicals (Alum), branded and unbranded generic pharmaceuticals, hair oil and disinfectants such as phenol, naphthalene balls, bleaching powder, toilet cleaners and floor cleaners.

Manufacturing Locations: At present BCPL has four factories; at Maniktala and Panihati in West Bengal, Mumbai and Kanpur.

Maniktala Unit: This unit primarily produces Division II products which include branded as well as unbranded generic pharmaceuticals. The company has recently commissioned/ started commercial operation of its Tablet, Capsule and Ointment sections. The Injectable section is under commissioning and Company will be able to commercialize the operation of Injectable Section in this financial year itself.

Panihati Unit: Panihati unit, located near Kolkata, primarily produces Division I (Alum) and Division III products which include Pheneol, Naphthalene Balls, and other disinfectants. Commercial production in most of the renovated production-blocks such as Alum, Pheneol, Napthalene and White Tiger have commenced

Mumbai Unit: Mumbai unit produces Hair Oil under the brand name ‘Cantharidine’. The commercial space developed has been leased out to third parties for generation of additional sources of income.

Kanpur Unit: Kanpur Unit, set up in 1949, primarily produces Division II products which includes tablets and capsules and small quantity of Hair Oil.

Past Achievements: The Company has retained its brand position in home products even during the crisis period and well set to capitalize on these brands now.

Sickness and Revival: The Company was referred to erstwhile BIFR in 1992. The revival package for BCPL was approved by the Government in December 2006. The package of Rs 440.60 Cr was approved which comprised of restructuring of exiting debts on the books of BCPL, capital investments, support for development of marketing infrastructure and promotional measures, grant for wage revision and implementation of VRS and funds for payment of non-Government dues. Even after restructuring the Company in 2006, it was running in losses and its operational performance had come down drastically to Rs.17 Crore Turnover in 2013-14, which was the lowest ever turnover since its nationalization in 1981, and reported a loss of Rs.36.37 Crore in 2013-14. However, from the financial year 2016-17 onwards, the company became a Turnaround Company and reported a Net Profit of Rs.4.51 Crore and a Gross Margin of Rs.24.05 Crore. In the financial year 2017-18 also Company is expecting to earn Net Profit.

Modernization of Plants (Government assistance projects and status)

(Rs in Crore)

Projects Investments Status
Ointment & Common items –Maniktala 29.92 Completed & commercial production started
Betalactam Block-Maniktala 33.53 Completed & commercial production started
Cephalosporin Block- Maniktala (Now Non-Betalactum Block) 31.34 To be Completed
Panihati Project 27.95 Completed
OSD project at Kanpur 34.44 To be completed
ASVS - Maniktala 2.90 Stopped for want of fund
Pre-operative expenses 17.07 -
Total 177.15 -

Product profile and Range:

The products manufactured under each of these business segments are mentioned below:

Division Description
Division I
  • Tablets
  • Capsules
  • Liquid Preparation
  • Ointment
  • Antiseptic Liquid
  • Injectables
  • Aqua Ptychotis
  • Eutheria
  • Kalmegh
Division III
  • Pheneol
  • Bleaching Powder
  • Klin Toilet
  • Lysol
  • Cantharidine Hair Oil
  • Naphthalene Balls
  • Liquid Soap (For Industrial Use)
  • White Tiger (Floor Cleaner)
  • Aguru (Essence)

Popular Brands: Pheneol – Lamp brand, White Tiger, Naphthalene, Cantharidine Hair Oil.


Partcular Manpower (As on 30.11.2017)
Executive 65
Supervisors 62
Workers 137
Grand Total 264

Distribution network:

The company has a strong distribution network pan India with 11 Depots and 6 C&F Agencies.


Details of Production, Turnover and Financial Performance of BCPL from 2013-14 onwards are as under:

(Rs in Crore)

Particulars 2017-18 2016-17 2015-16 2014-15 2013-14
Production 98.18 102.69 106.70 64.10 19.70
Turnover 88.19 85.36 88.19 45.84 17.06
Total Income 98.40 110.25 112.76 65.53 36.63
Gross Margin (PBDIT) 24.23 24.05 11.24 1.65 (20.36)
Interest Expenses (Finance Cost) 905 15.07 16.42 15.36 12.85
Depreciation 512 4.47 3.95 3.61 3.34
Net Profit 10.06 4.45 (9.13) (17.32) (36.55)

DPE rating:

Year MOU Assesment Corporate Governance
2009-10 Poor "poor"
2010-11 poor "poor"
2011-12 poor "poor"
2012-13 poor "poor"
2013-14 poor "poor"
2014-15 "Good" "Fair"
2015-16 "Excellent" "Excellent"
2016-17 "Very Good" "Excellent"



Future priducts

ASVS Project: It is planning to start ASVS Project as the product is not available in the country at the moment in required quantity as both the Government sector units namely BCPL and Central Research Institute (CRI), Kasuali, have stopped production of ASVS for the last 10 years. Due to non availability of fund and also due to project cost escalation the project could not be started. The total project cost for ASVS block as on date is Rs 31.00 Cr.

Cabinet has decided on 28th December 2016 for strategic disinvestment of the company after meeting all its liabilities from sale of surplus land through open competitive bidding to Government Agencies. Further follow up action in the matter are being taken.

Rajasthan Drugs & Pharmaceuticals Ltd. (RDPL)

Rajasthan Drugs & Pharmaceuticals Limited (RDPL) is a 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, Govt. of Rajasthan) hold 51% and 49% respectively. It 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).

The Company is not doing production since October 2016 due to fire incident in the plant at Jaipur.

The company has a well-equipped laboratory with modern equipment like HPLC, FTIR, etc., for ensuring high quality parameters.

The Company was 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. RDPL had supplied medicines for implementation of ‘JAN AUSHADHI’ programme where quality generic medicines are made available to the public at large in the country at affordable prices. The Union Cabinet in its meeting held on 28.12.2016 decided for closure of Rajasthan Drugs & Pharmaceuticals Ltd. (RDPL). The liabilities will be settled through sale of surplus land.

Production and Sales performance:

Years Production Sales
2013-14 54.93 43.51
2014-15 25.04 24.90
2015-16 39.78 36.53
2016-17 (upto Oct'2016) 3.77 6.97

Product Profile:

The Company had been dealing in following products:

  • Anti-Biotic
  • Anti-Malarial
  • Antacids
  • Analgesic, Anti-Pyretics & Anti-Inflammatory
  • Anti-Emetics
  • Anti-Spasmodics
  • Anti-Diarrhoeal / Anti-Amoebic
  • Cough Expectorants
  • Anti-Allergic
  • Anti-Bacterials
  • Anti-Fungal
  • Vitamins & Minerals
  • Opthalmic Preparations
  • Oral Rehydration Salt (ORS)
  • Anti Retro Viral
  • Anti Hypertension

As per the Union Cabinet Decision dated 28.12.2016 for Closure of RDPL only that much of surplus land of RDPL as would be required to meet the liabilities be sold through open competitive bidding to Government agencies and the outstanding liabilities be cleared from the sale proceeds. Voluntary Separation Scheme/ Voluntary Retirement Scheme also be implemented in the PSUs to pave way for their closure. Remaining part of the land should be managed in accordance with guidelines of Department of Investment and Public Asset Management (DIPAM) and Department of Public Enterprises (DPE) in this regard and if need be, vested in a SPV created for this purpose. After liabilities have been met, balance sheet cleansed and the Voluntary Separation Scheme/Voluntary Retirement Scheme effected. The follow-up action for implementation of the decision is under way.

Min Description: 
Manufacturing of strategic Pharma Products