The Kerala State Drugs and Pharmaceuticals Ltd (KSDP), a state government undertaking enlisted as a sick unit from 2004, has reported a turnaround last year after recording huge losses in previous years. In 2006 alone KSDP reported a loss of Rs 60 crore.
In 2007-08, KSDP has recorded a profit of Rs 10 crore placing itself as one among the 27 public sector undertakings marking profit in the state. The company is estimating a profit of around Rs 13 crore in the current financial year through its institutional business focusing on government purchases, informed a senior official in KSDP.
The company is also planning to upgrade its facilities on par with the latest regulatory standards to grab more space in the domestic market. At present, the company is waiting for project approval from the concerned departments for its renovation programme. KSDP has submitted a detailed proposal, prepared by consultant firm, with the state government for facility upgradation to implement Good Manufacturing Practice (GMP) standards and diversifying its operation by establishing a separate beta lactum plant. Officials said that the company is expecting commencement of civil works within six months.
"The proposal will have slight changes with the approval of the upgradation project. We have received a total grant of Rs20 crore from the government and is expecting some more funds to be allotted in the later stage," said the official. The current facility will be supported with facilities for quality assurance and control to meet the industry standards.
The primary project outline prepared by October 2008 include recommendations to set up one unit each for betalactum tablets, capsules and syrup along with units for non betalactum capsule, oral liquid section, large and small volume parenterals and dry powder manufacturing. The proposal also specifies requirement of two units for non beta lactum tablets, according to official announcement. However, the officials refused to comment more on the current status of the facility.
The company, established in the end of 1971 at Kalavoor, Alappuzha, has also announced its decision to lease its active pharmaceutical ingredients manufacturing plant for vitamin A to the industry in mid 2008. The plant was set up as the part of diversification of KSDP Ltd for manufacture of vitamin A (30 MMU/Annum) and vitamin A based formulations and beta ionone (20 Ton/Annum) with technical Know-how from Roche Products. The plant was designed and erected by Tata Consulting Engineers, Mumbai and commissioned in 1984. Due to severe financial crisis production of vitamin A was stopped in 2004 and the plant has been remaining idle.