‘Sick’ PSU Hindustan Antibiotics looks at global market to boost earnings - Hindustan Times
close_game
close_game

‘Sick’ PSU Hindustan Antibiotics looks at global market to boost earnings

Hindustan Times | By, New Delhi
Nov 01, 2016 10:47 AM IST

After being taken off from the government’s list of public sector units to be put up for strategic sale, sick pharma PSU, Hindustan Antibiotics Ltd, plans to tap international market to grow its revenue kitty.

Hindustan Antibiotics Ltd’s current revenue is around Rs 80 crore.(HT Archive)
Hindustan Antibiotics Ltd’s current revenue is around Rs 80 crore.(HT Archive)

The company will execute new diversification strategies with an aim to feature among the world’s major medicine producers 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. HT has a copy of the letter.

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, is silent about the 1,000 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.

After making continuous losses since 1993-94, the company was referred to the Board for Industrial and Financial Reconstruction (BIFR) in 1997. A rehabilitation scheme was first prepared by IDBI and later revised and approved by the BIFR.

Elevate your career with VIT’s MBA programme that has been designed by its acclaimed faculty & stands out as a beacon for working professionals. Explore now!

See more

Stay updated with the latest Business News on Petrol Price, Gold Rate, Income Tax Calculator along with Breaking News Events and Latest News Updates on Hindustan Times.

SHARE THIS ARTICLE ON
SHARE
Story Saved
Live Score
OPEN APP
Saved Articles
Following
My Reads
Sign out
New Delhi 0C
Friday, July 26, 2024
Start 14 Days Free Trial Subscribe Now
Follow Us On