Condom-maker PSU at forefront of antibody testing kits

Covid-19: Meet the state-owned HLL Lifecare Limited (the HLL stands for Hindustan Latex Limited, its avatar in its condom making days, but no one uses that name anymore), which has emerged an important part of the government’s fight against Covid-19.

In the 1970s, it played a key role in India’s family planning programme, manufacturing condoms branded Nirodh.

Covid-19: The Thiruvanthapuram, Kerala-based company has developed a rapid antibody diagnostic kit to test Covid-19 patients (in a mere 15-20 minutes, the company claims). Image used for representational purpose only. (Bloomberg)

Just around three years ago, dismissed as a mere condom maker (it was more), there was an attempt to privatise the company.

Over the past month, it has been at the centre of controversies -- on how it delayed placing orders for protective equipment for health care workers, or the margin it was adding to such equipment it sourced.

Meet the state-owned HLL Lifecare Limited (the HLL stands for Hindustan Latex Limited, its avatar in its condom making days, but no one uses that name anymore), which has emerged an important part of the government’s fight against Covid-19.

The Thiruvanthapuram, Kerala-based company has developed a rapid antibody diagnostic kit to test Covid-19 patients (in a mere 15-20 minutes, the company claims). According to EA Subramanian, director of technical operations of HLL Lifecare, the company was able to develop the test kit within a month. It has had experience in developing test kits for TB, dengue and malaria.

The Union government has already placed an order worth ~2,000 crore for the kits and other equipment. In fiscal year 2018-19, HLL Lifecare’s standalone revenues were ~1,471 crore and net profit , ~15.36 crore. Even including its five subsidiaries it had revenues of ~1,696 crore and made a small loss of ~12.96 crore.

The test kits are important because governments across the world are scrambling to manufacture or buy enough test kits. India, too, ordered on April 7 half-a-million rapid antibody test kits with at least seven Chinese companies receiving import licenses from the Drug Controller General of India (DGCI ) for the same.

Established in 1967, HLL Lifecare played a crucial role in the family planning campaign of the country, distributing condoms at subsidised rates. Its brand Nirodh was the mascot of the family planning campaign and almost became a generic name for condoms in the country. Later it diversified into other areas, making intrauterine devices, contraceptive pills, blood bags, surgical sutures, and Ayurvedic preparations.

The company says that unlike imported Covid-19 test kits, which cost ~700-800, its own kits will be priced ~350-400 (the final prices have not been fixed).

The health ministry has already authorised HLL Lifecare as the nodal procurement agency for all medical requirements to fight Covid -19. It has been entrusted with procurement of N95 surgical masks with respiratory valves, personal protective garments, nitrile gloves, goggles, hand-held infrared thermometers and hand sanitisers .

Since there is mounting demand for these products across the country, HLL floated an open tender and shortlisted some of manufacturers who will now supply these, said a company official who asked not to be named. The company is also manufacturing some protective equipment in-house.

“We have also entered into an agreement with Sree Chithira Tirunal Institute for Medical Sciences and Technology for developing patient examination and disinfection booths. The World Health Organization is also funding us to make and procure more ventilators,” said Subramanian.

Meanwhile, employees of the public sector unit are upbeat about the role their firm is playing in the Covid fight. “Good the government did not sell it off. Now it is playing a key role in the health sector of the country. Hope this will open the eyes of the government,” said an office- bearer of the Hindustan Latex Employees Union who did not want to be identified.

The union, the Kerala government and the Union ministry of health are believed to have scotched efforts to privatise the company.