New Delhi, Aug. 24: The 100-year-old Bengal Chemicals and Pharmaceuticals Ltd plans to set up a joint venture to manufacture vaccines for kala-azar and retro-viral diseases.
Suprakash Kundu, managing director of Bengal Chemicals, told The Telegraph that the company was in talks with a large number of pharmaceutical companies.
He was, however, unwilling to disclose names because of confidentiality clauses. While the chosen partner will provide technological inputs, Bengal Chemicals will be involved in production, marketing and distribution.
The state-run company also plans to manufacture its anti-venom serum once again. India was forced to import the serum after Bengal Chemicals stopped production.
Kundu said the company was also planning to concentrate on home products such as phenyl, naphthalene and cantharidine. Plans are on to increase capacity and sales volumes.
At present, Bengal Chemicals has a market share of 7 to 8 per cent in home products.
The recast programme is aided by a Rs 207.19-crore loan from the Centre and waiver of loans and interests to the tune of Rs 233.14 crore.
Around Rs 55 crore from the funds will be used to get a Schedule M certificate by upgrading laboratories and facilities according to WHO specifications.
Bengal Chemicals stopped producing drugs recently because it lacked a Schedule M certificate. Kundu plans to start production of formulations rather than bulk drugs right now.
Kundu, said, “In the next five years, Bengal Chemicals plans to spend Rs 20 crore on vaccines, another Rs 5 crore on research and development, around Rs 2 to 3 crore on carrying and forwarding cost and Rs 2 crore on advertisements and promotions.”
The company is targeting a turnover of over Rs 100 crore this fiscal compared with Rs 52 crore last year.
Bengal Chemicals had suffered a loss of Rs 4 crore last year. This year, the profit is expected to be negligible.
The company is also planning to reach out through retail networks.
However, its order book mostly remains full and there are times when it can’t deliver because of capacity or working capital constraints.
