Karnataka Antibiotics and Pharmaceuticals Limited (KAPL) Workers Union feel that they are left in the lurch with no information from their parent company Hindustan Antibiotics Limited (HAL) about a possible take over bid by Sun Pharma.
The government must make a sincere effort to assess the situation in KAPL as it is a profit making unit, where HAL holds a 58 per cent equity and state government through the Karnataka State Industrial Investment Corporation (KSIIDC) a 42 per cent stake, Ravi Prasad, general secretary, KAPL Union told pharmabiz.com
If the take over takes place, that will lead to a major crisis for KAPL and its employees. There is no justification on the final sale price if it is fixed below the current value of HAL assets that is estimated at Rs.750 crore. Any price quoted for HAL which is lower than its asset value should be considered as shoddy deal and would be a humiliating blow to its second highest stake holder company, KAPL, he said.
Since mid- 2002, the KSIIDC has been evincing considerable interest to purchase the entire shares of HAL and has communicated to the Ministry of Chemicals and Fertilizers, Government of India.
But KAPL Union is still skeptical about the purchase of HAL stake by KSIIDC as most of state government units are loss-making enterprises. The KAPL Union maintains that in the likelihood of a State government takeover, a professional management with an official having a pharmaceutical background heading it should take charge of the company.
KAPL has an ISO accreditation from KPMG, Netherlands. It has registered a turnover of Rs. 90 crore. There are currently 220 non- executives, 150 sales and marketing sales representatives in the company. KAPL has been manufacturing products for reputed Indian and multinational companies.
KAPL was incepted in 1980 and it specializes in the manufacture of a wide range of life saving drugs like parenteral antibiotics, surgical sutures, agrovet preparations etc.