The Kerala State Drugs and Pharmaceuticals Limited. (K.S.D.P.), Alappuzha, the first and only public sector Vitamin A manufacturer in the country, is facing an imminent closure. A section of the employees, unpaid for the last four months, may soon sell liquor at the Government run retail liquor outlets to run their families.
According to information available with Pharmabiz.com, about 30 employees of the defunct Vitamin A plant have opted for deputation to work with the Kerala State Beverages Corporation's liquor retail outlets from this Onam season onwards, and at least another 30 have applied for the same job. Majority of the workers applied for deputation are from the Vitamin A division, which has about 150 employees.
N.R.Subramanian, Managing Director of the Travancore Cochin Chemicals Ltd. (TCC), Alwaye and the Managing Director (in -charge) of KSDP confirmed this to Pharmabiz.com, when contacted at his TCC office. KSDP, which also manufacturers more than 100 drug formulations and bulk drugs, has total staff strength of 420 employees.
Currently, only the formulation division is functioning, that also partially, surviving to execute the lone order worth about Rs. one crore from the health department of Andhra Pradesh Government. Raw material supplies have been fully dried up as bills worth several lakhs are pending to the suppliers. The Telephone department has snapped all the telephone lines 'temporarily' to the company, including the lines to the office of the Managing Director, for not paying the bills amounting to several lakhs due many months. Same is case of power bills. Employees are not paid even partially for the last four months, and in recent times, the company was not paying statutory benefits like Provident Fund, ESI etc. KSDP's total debts now stand at several crores, including the Rs.10 crore odd dues with interest to RIAB, which infused Rs.3.5 crore loan two years ago, when a similar closure threat engulfed the company.
Once the AP Government order is executed, the company will be forced to declare total lock out, fear inside sources with KSDP, who feel that the only ray of hope is further fund infusion from the State Government and placement of orders by the Kerala State Health Department which purchases Rs.120 crore drugs annually for its hospitals in the state. However, at present the state has surplus stocks of life saving drugs, as the department also source drugs from private drug manufacturers, say the sources.
KSDP, located at Kalavoor near Alappuzha, and once described as the pride of Kerala, was started in 1974 to supply cost effective life saving drugs to the state run hospitals and clinics, thanks to the initiative of the late communist leader A.K.Gopalan. Soon the company expanded its base by supplying to other state health departments and trying its luck in the open market with increased product base and value addition. KSDP also tried to export its products, but could not penetrate the markets.
In 1983, KSDP commenced production and marketing of nutritional Grade Vitamin A from lemon grass oil as the basic raw material, either as Palmitate or as Acetate, designed to suit the various needs of pharmaceutical, Vanaspati manufacturing and for the fortification of various animal feeds and other food materials. The plant, started in technical collaboration with M/s.Hofmann-La-Roche, had an installed capacity to make 30 Mega Million Units (MMU) of Vitamin A and 22 Metric Tonnes of Beta Ionone per annum.
The formulation division manufactures tablets, including analgesics, antipyretics, vitamins, antibiotics, sulphas, anti TB Drugs, anti asthmatic, anti-allergic drugs etc, 15 vitamins and antibiotics in capsules, 30 large and small volume parenterals and steroids, 10 liquid orals, drugs like Kaylon (Chlorhexidine with Cetrimide solution which is one of the pioneer products manufactured in this area) etc.
However, the plans of the company did not materialize as expected, due to the lethargy of the official bureaucracy coupled with mismanagement and indiscipline of the workers. Change of Governments in the state resulted in shifting of management of the company from one to another, and on many occasions, landing in the hands of non-professionals. In the latest reshuffle in March this year, the ruling Kerala UDF Government had removed D.Aravindakshan, who served for almost two years, from the post of Managing Director of KSDP, and the charge was given to the TCC Chief. A leading cardiologist from Kozhikkode, Dr.Kunjali, said to be a relative of the State Industries Minister P.K.Kunjalikutty, was brought in as the Chairman. The present Chairman visits the company very rarely, allege KSDP sources.
Inability of the company to compete in the national and international markets, lack of quality products, failed diversifications like manufacturing of veterinary drugs and animal feeds etc. are also said to be the factors that have contributed to the downfall of KSDP. Learned sources say it requires an investment of about Rs.50 crore to start a company like KSDP.