in the next five years, newly appointed managing director Nirja Saraf said in a letter written to employees. “So, let’s first make plans to increase our turnover to the level of R300 crore and also make a plan to tap the international market,” Saraf said. Hindustan Antibiotics Ltd’s current revenue is around Rs 80 crore. The Indian antibiotics market is estimated at around Rs 2,500 crore, while globally, it is around Rs 2,70,000-crore market.
The letter, however, has not said anything about the future of the 1,000 odd employees of the PSU who haven’t received their salaries for over 23 months. The affected employees have demanded a Rs 678-crore rehabilitation package.
Hindustan Antibiotics Ltd, whose foundation was laid by the first Prime Minister of the country, Jawaharlal Nehru, ran into financial troubles mainly due to increased competition and obsolete business strategies.
Hindustan Antibiotics Limited, based in Pimpri, Pune, is among the first public sector drug manufacturing companies set up by the Government of India. It was the first company in India to launch a recombinant DNA product, rHU-Erythropoietin (Hemax) in 1993. The PSU introduced new products like Halpen, Haltax, Hexpan in 2008. HAL was set up in cooperation with the WHO and UNICEF with the social objective of providing affordable drugs throughout India.
After reporting an operating loss in 1997, the PSU was reported to the Bureau of Industrial and Financial Restructuring (BIFR). On 17 January 2009 the company was taken off the books of the BIFR after reporting a record turnover of Rs 120 crore ($24 million).
Earlier, the government was looking to raise Rs 1,700 crore by monetising a part of land parcels owned by sick public sector pharma companies and using the proceeds for their revival.
IDPL has debt of Rs 1,000 crore and HAL Rs 650 crore. IDPL has lands in Chennai, Hyderabad, Hrishikesh and about 90 acre in Gurgaon.
HAL has around 270 acre land, and even if 40-50 acre is sold the target can be met.
As per the direction of Government in order to cover the deficiencies in the Rehabilitation Scheme sanctioned by BIFR, the Company has submitted the 2nd Rehabilitation Plan which is under consideration of the Govt. of India.