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The ailing public sector undertaking (PSU) Hindustan Antibiotics Ltd (HAL) is banking heavily on efforts by Union agriculture minister Sharad Pawar to secure bulk orders for the company from the ministries of agriculture and health, besides the Maharashtra government.
On July 7, Pawar held a meeting with the Pune-based HAL management and union representatives in New Delhi to help address the sales and marketing woes of the sick PSU and assist in its revival.
Pawar, who has led HAL's labour union, the Hindustan Antibiotics Mazdoor Mahasangh (HAMS) for nearly 15 years, is well aware that the company with 1,100 employees can survive only through adequate sales and marketing support.
DNA in a series of exclusive reports beginning July 20 (Hindustan Antibiotics bleeds as drugs expire in godowns) had highlighted the existence of substantial quantities of unsold stocks in the HAL godowns that had expired.
In an extensive interview with DNA on Wednesday, HAL's director (finance) and acting managing director AS Vaidya acknowledged that ever since HAL lost its penicillin manufacturing business to China, the company has been struggling to switch from bulk drugs to formulations in a bid to survive. This is also reflected in HAL's erratic turnover which dropped sharply to Rs95.5 crore in 2009 from Rs142 crore in 2007.
Apart from suffering from extremely poor sales and marketing, it is not easy for HAL to secure and process government orders for drugs. "Often the orders come towards March-end (when government organisations have to exhaust their budgetary allocations). We have to always maintain adequate inventory to supply drugs. If these drugs are not sold then some quantity of the drugs expires in the factory itself," Vaidya said.
He confirmed to DNA that the company normally keeps 45 days' stock whose MRP value would be around Rs21 crore as reported by DNA.
Senior company officials told DNA that HAL cannot offer sales incentives as is done by private pharma companies to promote their sales. Therefore, the only recourse for the company was to depend on healthy orders from government hospitals and institutions.
Vaidya said that Pawar directed his ministry officials on July 7 itself to buy HAL products like Streptocycline and Aureofungi for distribution among the farmers. Both the products are pesticides and ensure proper plant growth, he said.
Pawar also informed the HAL management and the union led by its general secretary Arun Borade that he would meet with the Union health minister Ghulam Nabi Azad and Maharashtra health minister Suresh Shetty in the near future to secure government orders for HAL.
"HAL has estimated that it would get orders worth Rs200 crore that would immensely help the firm in strengthening its fiscal condition," Vaidya said.
Sharad Pawar steps in to secure govt orders for HAL - Mumbai - DNA
On July 7, Pawar held a meeting with the Pune-based HAL management and union representatives in New Delhi to help address the sales and marketing woes of the sick PSU and assist in its revival.
Pawar, who has led HAL's labour union, the Hindustan Antibiotics Mazdoor Mahasangh (HAMS) for nearly 15 years, is well aware that the company with 1,100 employees can survive only through adequate sales and marketing support.
DNA in a series of exclusive reports beginning July 20 (Hindustan Antibiotics bleeds as drugs expire in godowns) had highlighted the existence of substantial quantities of unsold stocks in the HAL godowns that had expired.
In an extensive interview with DNA on Wednesday, HAL's director (finance) and acting managing director AS Vaidya acknowledged that ever since HAL lost its penicillin manufacturing business to China, the company has been struggling to switch from bulk drugs to formulations in a bid to survive. This is also reflected in HAL's erratic turnover which dropped sharply to Rs95.5 crore in 2009 from Rs142 crore in 2007.
Apart from suffering from extremely poor sales and marketing, it is not easy for HAL to secure and process government orders for drugs. "Often the orders come towards March-end (when government organisations have to exhaust their budgetary allocations). We have to always maintain adequate inventory to supply drugs. If these drugs are not sold then some quantity of the drugs expires in the factory itself," Vaidya said.
He confirmed to DNA that the company normally keeps 45 days' stock whose MRP value would be around Rs21 crore as reported by DNA.
Senior company officials told DNA that HAL cannot offer sales incentives as is done by private pharma companies to promote their sales. Therefore, the only recourse for the company was to depend on healthy orders from government hospitals and institutions.
Vaidya said that Pawar directed his ministry officials on July 7 itself to buy HAL products like Streptocycline and Aureofungi for distribution among the farmers. Both the products are pesticides and ensure proper plant growth, he said.
Pawar also informed the HAL management and the union led by its general secretary Arun Borade that he would meet with the Union health minister Ghulam Nabi Azad and Maharashtra health minister Suresh Shetty in the near future to secure government orders for HAL.
"HAL has estimated that it would get orders worth Rs200 crore that would immensely help the firm in strengthening its fiscal condition," Vaidya said.
Sharad Pawar steps in to secure govt orders for HAL - Mumbai - DNA
